AECI Limited - Reviewed condensed consolidated financial results and cash dividend declaration for the year ended 31 December 2025

AECI LIMITED
(Incorporated in the Republic of South Africa)

Registration number: 1924/002590/06

Tax Reference Number: 9000008608

Share code: AFE ISIN: ZAE000000220

Hybrid code: AFEP ISIN: ZAE000000238

Bond company code: AECI

LEI: 3789008641F1D3D90E85

(AECI or the Company or the Group)

 

Reviewed condensed consolidated financial results and cash dividend declaration for the year ended 31   december 2025

•    Safety performance: TRIR improvement of 35% to 0.20 (31   December 2024: 0.31)

•    Revenue from continuing operations down 4% to R32,183 million

•    EBITDA 1 from continuing operations up 12% to R3,412 million

•    Profit from continuing operations down 1% to R1,530 million

•    EPS from continuing operations up 36% to 357 cents per share (cps)

•    HEPS up 53% to 1,098cps

•    Final dividend of 128cps (31   December 2024: 219cps); total dividend of 228cps (31 December 2024: 219cps)

•    Net debt of R465 million (31   December 2024: R3,738 million)

1   Earnings before interest, taxation, depreciation and amortisation calculated as profit from operations and equity-accounted investees plus depreciation, amortisation and impairments. EBITDA is a non-IFRS measure.

The Group delivered strong results during the year, with a marked improvement in both operational and financial performance. This was driven by disciplined pricing, cost and margin management, supported by a focused strategic effort to strengthen the Company’s core fundamentals.

Key achievements include:

•    A record EBITDA of R2.7 billion in AECI Mining. EBITDA margins improved to 15%.

•    Strong free cash flow conversion of 133% in AECI Chemicals.

•    R2.2 billion realised from the disposal of non-core assets.

•    A reduction in the Group’s net debt from R3.7 billion to R0.5 billion.

Statement from the Interim Group CEO:

“I am encouraged by the outstanding progress being made across the Group as we strengthen our position for long-term success.

  I am especially proud of AECI Mining’s excellent performance this year, with a record-high EBITDA and the excellent free cash flow generation achieved at AECI Chemicals. These achievements reflect the passion and commitment of our people and leadership.

The momentum we are building and opportunities ahead give me confidence in our collective ability to realise AECI’s full potential.”

Safety

The Group continued to improve its safety performance and culture. The 12-month rolling Total Recordable Injury Rate (TRIR) improved to 0.20, from 0.31 at 31   December 2025. AECI places the highest priority on protecting the health and safety of all employees, underpinned by accountable leadership, active employee engagement, and a rigorous, risk-based approach to Environment, Health and Safety management.

The Group had no fatalities during the year.

Financial review

The Group delivered solid results, with earnings per share from continuing operations increasing by over 100% compared to 2024. This   growth was primarily driven by improved EBITDA, mainly from AECI Mining and lower net finance costs supported by decreased debt levels.

The Group's headline earnings per share increased by 53%, reflecting higher underlying profitability and excludes the impact of impairments recognised in determining EPS from continuing operations.

The discontinued operations recorded a loss for the year of R15 million, compared with a R560 million loss recognised in the prior year. The Much Asphalt disposal was treated as a discontinued operation.

Cash and cash equivalents increased by 65% to R3,934 million and net debt (including lease liabilities) decreased to R465 million (2024: R3,738 million), resulting in a gearing of 4% (2024: 31%). This was significantly lower than the guided range of 20% – 40%. The Group's net debt to EBITDA, as defined in covenant agreements, improved to 0.1 times (2024: 1.2 times), remaining well below the covenant maximum threshold of 2.5 times.

 

AECI Mining

The segment delivered EBITDA of R2,722 million (2024: R2,284 million), which represents the highest in its history, notwithstanding revenue declining to R17,622 million (2024: R19,108 million). The increase in EBITDA was mainly achieved through disciplined pricing and structural margin improvement.

The EBITDA margin increased to 15% for the year (2024: 12%), supported by segment-wide focus on cost-efficiency initiatives, coupled with structural improvements that linked sourcing costs to contract pricing and a favourable product mix in the Asia-Pacific region. The South African explosives business delivered a notable improvement following the intentional exit from poor performing contracts, which were successfully replaced with new opportunities that positively impacted margins.

AECI Chemicals

The segment's revenue for the year increased to R10,306 million (2024: R9,862 million). EBITDA decreased to R924 million (2024: R972 million), mainly due to pricing pressures coupled with the recognition of a net R64 million in expected credit losses. Excellent free cash flow generation of 133% was achieved. The segment generated free cash flow of R1,233 million (2024: R917 million), an improvement of 34%.

Closing remarks

The Group remains firmly committed to delivering long-term value for stakeholders. Looking ahead, the Company will further continue to focus on its strategic fundamentals by leveraging core competencies and operational expertise.

Dividend

Declaration of final ordinary cash dividend No. 183

The Company’s board of directors is pleased to announce that it has resolved to declare a gross final cash dividend of 128 cents per ordinary share in respect of the year ended 31 December 2025. The dividend is payable on Tuesday, 7 April 2026 to holders of ordinary shares recorded in the register of the Company at the close of business on the record date, being Thursday, 2 April 2026.

The last day to trade “cum” dividend will be Monday, 30 March 2026 and shares will commence trading “ex” dividend as from the commencement of trade on Tuesday, 31 March 2026.

A South African dividend withholding tax of 20% will be applicable to all shareholders who are not either exempt or entitled to a reduction of the withholding tax rate in terms of a relevant Double Taxation Agreement, resulting in a net final cash dividend of 102.4 cents per ordinary share payable to those shareholders who are not eligible for exemption or reduction. Application forms for exemption or reduction may be obtained from the Transfer Secretaries and must be returned to them on or before Thursday, 2 April 2026.

The issued share capital of the Company at the declaration date is 105 517 780 listed ordinary shares, and 3 000 000 listed cumulative preference shares. The dividend has been declared from the retained earnings of the Company.

Any change of address or dividend instruction must be received on or before Monday, 30 March 2026.

Ordinary shares may not be dematerialised or rematerialised between Tuesday, 31 March 2026 and Thursday, 2 April 2026, both days inclusive.

Availability of the reviewed condensed consolidated financial results and review report for the year ended 31   December 2025

This results announcement is the responsibility of the Board. Shareholders and noteholders are advised that this results announcement is only a summary of the information contained in the full announcement and does not contain complete details. It has not been audited or reviewed by the Company's external auditors. Any investment decisions by investors and/or shareholders should be based on a consideration of the full announcement. The full announcement has been reviewed by the Company's auditors, Deloitte & Touche, who have expressed an unmodified review conclusion.

As required in terms of paragraph 4.13(e) of the JSE Listings Requirements (Listings Requirements), the Board hereby confirm that the reviewed condensed consolidated financial results for the year ended 31 December 2025, have been prepared in compliance with the Listings Requirements.

The reviewed condensed consolidated financial results for the year ended 31 December 2025 are available through the JSE cloud link at:

https://senspdf.jse.co.za/documents/202 6 /JSE/ISSE/AFE/ ReviewFY 25.pdf   and on the Company’s website at:

https:// investor.aeciworld.com/results-reports-presentations.php .

Any reference to future financial performance included in this announcement has not been audited or reported on by the Company’s external auditors.

Directors:

PG Sibiya (Chairman), I Kramer (Group CFO), ST Coetzer 1 , SA Dawson 2 , FFT De Buck, WH   Dissinger 3 , P Mishic O’Brien 4 , AM Roets, N Moholi, J Ndlovu, B Mawasha

1 Canadian   2 Australian    3 German   4 American

Investor Relations:   I Lepere

Group Company Secretary: C Singh

Board sign-off date: 24 February 2026

Results released on: 25 February 2026

Equity Sponsor: One Capital

Debt Sponsor: Questco Proprietary Limited

Registered office

First floor, AECI Place, 24 The Woodlands, Woodlands Drive, Woodmead, Sandton

Share transfer secretaries

Computershare Investor Services Proprietary Limited, Rosebank Towers,

15 Biermann Avenue, Rosebank, 2196

and

Computershare Investor Services PLC, PO Box 82, The Pavilions,

Bridgwater Road, Bristol BS 99 7NH, England