JSE-listed Altron ended the 2026 financial year on a strong note, setting the tone for the next year and marking the successful conclusion of its 'Accelerated Growth' phase and the start of its 'Transformative Growth' phase.

During the year ended February 28, the company posted a 34% increase in headline earnings a share to 239c apiece, with earnings a share rising 35% to 210c.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 10% to R2-billion, with a 20.8% Ebitda margin, up from 19%.

“We have delivered a strong full-year result in the 2026 financial year, with Ebitda of R2-billion, operating profit of R1.2-billion and cash generated from operations of R1.9-billion,” said CEO Werner Kapp on Monday.

The 25% increase in the operating profit from continuing operations to R1.2-billion was driven by Altron’s Platform segment, which includes Netstar, FinTech and HealthTech.

The Platforms segment also supported the 1% hike in group revenue to R9.6-billion, which was offset by a decrease in revenue in the IT Services segment and Distribution.

In the 2026 financial year, the Platforms segment contributed 46% to revenue, 91% to Ebitda and 95% to operating profit.

“2026 marks the successful conclusion of our Accelerated Growth phase. As we enter our next phase, Transformative Growth, Altron has transformed into a multi-platform business uniquely positioned to drive sustainable growth in South Africa’s digital economy, underpinned by an ungeared balance sheet and a higher-quality, annuity-driven earnings base,” Kapp continued.

SEGMENTAL PERFORMANCE
In the Platforms business, revenue increased 12% to R4.4-billion, with Ebitda increasing 21% to R1.8-billion and Ebitda margin up to 41.4% from 38.3% in 2025.

During the year under review, Altron FinTech was the standout performer, delivering operating profit of R561-million, up 33% year-on-year, driven by the focus on higher margin products and services, as well as the scaling effect in the business. The business further increased its revenue by 20% to R1.5-billion and Ebitda by 31% to R597-million.

Netstar also delivered a strong performance for the period under review, underpinned by solid growth in South Africa. Revenue increased by 9% to R2.5-billion, driven by 11% revenue growth in Netstar South Africa. Ebitda grew by 16% to R1.1-billion, crossing the R1-billion milestone for the first time, while operating profit increased by 78% to R453-million.

Altron HealthTech increased revenue by 2% to R403-million, while its Ebitda increased by 22% to R149-million and its operating profit increased by 19% to R143-million during the year ended February 28.

The IT Services segment, which comprises Altron Digital Business, Altron Security and Altron Document Solutions, delivered a mixed performance in a challenging operating environment, with overall revenue decreasing by 5% to R4.8-billion.

Ebitda declined 17% to R255-million, while operating profit decreased by 15% to R195-million.

Altron Digital Business (ADB) and the IT services component of Altron Security were impacted by subdued enterprise IT spending and industry-wide pressures, including changes to original-equipment manufacturer partner rebate structures.

These pressures were partially offset by a strong performance and turnaround in Altron Document Solutions, resulting in an overall muted but resilient segment outcome, the company pointed out.

ADB, which remained the most challenging business within the portfolio, recorded a 8% decrease in revenue to R3-billion, Ebitda of R26-million and operating profit of R7-million, the latter reflecting a material recovery from the first-half operating loss of R42-million.

Following the loss-making first half, the business delivered a profitable second half after the implementation of a profit-improvement strategy.

Altron Security increased revenue by 4% to R411-million and operating profit increased by 5% to R90-million.

Altron Document Solutions reflected a 2% decrease in revenue, impacted by changes in customer buying patterns, with increased demand for more cost-effective and digitally enabled solutions.

However, Ebitda increased by 46% to R123-million and operating profit increased by 61% to R98-million.

Meanwhile, during the 2026 financial year to February 28, Altron’s total capital expenditure amounted to R800-million, of which R739-million was directed toward growth initiatives, predominantly within the Platforms ecosystem.

The group has significantly strengthened its financial profile over the past three years, driven by a deliberate shift toward higher-quality earnings, platform-based businesses.

The strong cash generation and balance-sheet strength enabled the Altron board to increase the final ordinary dividend by 44% to 72c a share, bringing the total ordinary dividend for 2026 to 120c, and declare a special dividend of 120c a share, reflecting the group’s disciplined approach to capital allocation, Kapp concluded.