Construction group Raubex has shown healthy gains in its order book and operating profit for the financial year ended February 28, despite a setback at its Australian business.

The JSE-listed company grew its order book by 11.6%, to R31.46-billion, compared with the previous financial year.

The operating profit jumped by the same margin – 11.6% – to R1.7-billion, with revenue up 4.6%, to R22-billion.

CEO Felicia Msiza said on Monday that the group managed to remain well in the green against a backdrop of persistent geopolitical uncertainty and ongoing local challenges.

“This outcome was underpinned by a strong balance sheet, solid cash generation throughout the year, and a robust order book.”

Msiza added that the group’s long-running diversification strategy had played an equal role in its success, as it strengthened Raubex’s position across multiple sectors.

Revenue benefitted from the marked improvement in Bauba Resources’ second‑half performance, and a strong contribution from the Roads and Earthworks and Infrastructure divisions.

Operating profit saw growth owing to the strong recovery in the Materials Handling and Mining division, which includes Bauba Resources.

Revenue for the Materials Handling and Mining division declined by 3.2%, to R4.13-billion. Despite this, operating profit increased sharply to R444.9-million, up from the 2025 financial year’s R4.2-million.

This significant improvement was driven primarily by a strong turnaround in Bauba Resources’ mining operations.

“Bauba Resources delivered a marked turnaround in performance for the financial year, with operating profit rising sharply from a loss of R235.8-million in 2025 to a profit of R243.7-million in 2026 – a 203.4% improvement,” said Msiza.

Revenue for the Construction Materials division increased 8%, to R3.5-billion, while operating profit decreased by 13.4%, to R312.5-million.

The division’s results declined primarily owing to adverse weather conditions during the first two months of the reporting period, which reduced sales volumes in the aggregate and bituminous businesses.

In addition, the industrial minerals segment was significantly affected by ongoing uncertainty surrounding the future of ferrochrome smelters in South Africa.

Revenue in the Roads and Earthworks division increased by 4.9%, to R7.13-billion, while operating profit rose by 4.3%, to R612.7-million.

Revenue for the Infrastructure division increased by 30.2%, to R4.35-billion, with operating profit increasing by 42.2% to R426.9-million.

The performance was mainly attributable to new contracts secured in South Africa.

“Our renewable-energy projects continued to deliver solid returns and we secured new renewable-sector contracts valued at approximately R2.1-billion,” said Msiza.

Revenue in the Australia division decreased by 14.4% to R2.94-billion, and operating profit declined to an operating loss of R60.4-million.

The most significant setback arose from Raubex Construction Australia’s largest project for a major mining client.

The contract was issued a deed of settlement at the end of December, and the financial impact amounted to a loss of R177-million.

This loss was the single biggest factor weighing on the division’s overall results.

Msiza pointed out that Raubex managed to further diversify its business during the year under review.

“To support Raubex’s strategic objectives and diversify our income streams, we acquired Hlumisa Engineering Services, a company with specialised expertise in mechanical and electrical engineering, with a strong emphasis on water and wastewater treatment; a 67% interest in Axis Mineral Services (Australia), a contract crushing business; [while we also] acquired the Mowcop Silica Quarry, the Construction Materials division’s entry into a niche, high‑potential market.”