Altron Reports Strong Interim Growth and Increases Dividend by 15%

Altron lifts interim dividend by 15%, delivering its strongest interim top-line growth in three years

HEPS up 14%, revenue up in each segment and R1.0 billion of cash generated from operations in six months

Johannesburg, 2 November 2026 - Altron Limited (JSE: AEL) today reported a 13% rise in operating profit from continuing operations to R622 million for the six months to 31 August 2026, with its platform businesses continuing the strong momentum and IT Services returning to revenue growth and profit growth continued.

Commenting on the HY27 results, Group CEO Werner Kapp said, “HY27 represents a strong start to our Transformative Growth strategy and reflects continued execution against the priorities outlined at our Capital Markets Day. The Group delivered its strongest interim top-line growth in three years, while continuing to improve the quality and predictability of earnings through a higher annuity revenue mix and strong cash generation, which increased 32% to just over R1 billion. This allowed the Board to increase the interim dividend by 15%, while maintaining the flexibility to invest behind our growth opportunities.”

Revenue rose 5% to R5.1 billion, with growth across all three segments: Platforms up 8% (driven by annuity revenue, up 11%), IT Services up 4% and Distribution up 35%.

Higher-quality earnings, stronger cash conversion
Annuity revenue in the Platforms segment grew 11% to R2.2 billion and now makes up 92% of  Platforms revenue, up from 82% three years ago. Platforms contributed more than 95% of operating profit. 

Kapp continued, “Our platform businesses operate in markets underpinned by the digitalisation of  mobility, payments and identity, including increased digital adoption in the informal economy,” Kapp  said. “Our multi-platform ecosystem remains highly relevant, benefiting from long-term growth trends that  continue to outpace the broader South African economy. Revenue growth is a key focus across the  Group, and we continue to see attractive opportunities to invest behind our platforms, particularly Netstar and Altron FinTech.”

Cash generated from operations rose 32% to R1.0 billion, at 92% of EBITDA (HY26: 81%). Altron invested R447 million in capital expenditure,91% of it growth CAPEX, and returned R755 million to shareholders in June through the FY26 final and special dividends, ending the period with net cash of 
more than R800 million.

“Our strong balance sheet, improved earnings quality and disciplined capital allocation framework provide the flexibility to invest behind long-term growth opportunities, support shareholder returnsand continue strengthening the Group's multi-platform ecosystem. This gives us confidence in the Group's medium-term growth prospects," said Kapp.

AI Factory delivering value inside the Group
One year after launching South Africa's first AI Factory, Altron has deployed more than 100 AIenabled use cases across the Group and over 100 developers are building solutions in the AI Factory. “The AI Factory is an important enabler of our Transformative Growth strategy, and adoption has  exceeded our expectations,” Kapp said. “Our focus is first on realising value inside Altron, through productivity gains, cost optimisation and better customer outcomes, and on getting more value from the platforms, data and customer ecosystems we have built.”

HY27 Performance Highlights
Platforms
Altron FinTech - Largest Profit Contributor
Altron FinTech, now the Group's largest contributor to operating profit, grew revenue 14% to R858 million, EBITDA 18% to R324 million and operating profit 17% to R300 million, more than double its HY24 level. Annuity revenue represents 87% of the total. The number and value of debit orders processed both rose 14%, and point-of-sale (POS) device rentals grew 61% to more than 30 000.

Netstar - Annuity Growth in an Investment Year
Netstar grew its annuity revenue 11% to R1.2 billion, now 94% of revenue, while lower hardware sales held total revenue growth to 6% at R1.3 billion. EBITDA rose 15% to R619 million, with the margin expanding 370 bps to 47.7%. Subscribers grew 8% to 2.3 million, with higher-margin enterprise subscribers up 17%, and churn steady at approximately 16%. FY27 is a deliberate investment year for Netstar, focused on platform modernisation and customer acquisition, while the capabilities ofthe AI Factory increasingly being applied to improve productivity, automate routine processes and unlock greater value from the platform and data assets. 

Altron HealthTech - Margins Expand
Off a modest 2% revenue growth to R205 million, Altron HealthTech managed to increased EBITDA by 13% to R76 million, with the margin expanding 380 bps to 37.1%. Annuity revenue now makes up 98% of total revenue. 

IT Services
Altron Digital Business - Back to Profit and Growth
Altron Digital Business carried the momentum of the second half of FY26 into HY27, growing revenue 8% to R1.6 billion. EBITDA improved to R32 million from a loss of R32 million, and operating profit to R22 million from a loss of R42 million. Stronger leadership, sharper sales execution and an agile andefficient operating model are translating into improved order intake and contract renewals.

Altron Security - Timing of revenue recognition shifts into the second half of FY27
Altron Security revenue declined 18% to R207 million and EBITDA 53% to R37 million, because of software revenue recognition timing in its identity and digital signing platform business. The timing of this revenue recognition has moved to the second half of FY27. Altron Security successfully completed the deployment of Zambia’s National Public Key Infrastructure in HY27, providing the trust foundation required for digital identity, digital signatures and secure online services, supporting the growing relevance of digital identity and trusted digital transactions across Africa.The South African Government’s Digital Transformation Roadmap and October 2026 announcements relating to digital identity reinforce the increasing importance of secure identity infrastructure as a foundational component of the country’s evolving digital economy

Altron Document Solutions  Momentum Continues
Altron Document Solutions grew revenue 4% to R722 million, outpacing market growth given the challenging print market. Margin expansion drove EBITDA up 30% to R60 million and operating profit 
45% to R48 million. Growth is coming from managed services, digital workflow solutions and AIenabled software and support services.

Distribution
Altron Arrow - Return to Growth
Altron Arrow is through the bottom of the cycle, growing revenue 35% to R388 million and operating profit 33% to R24 million. The order book is growing, and the business recorded a positive book-tobill ratio for the first time in two years.

Results presentation
An investor presentation will be webcast at 09h30 on 2 November 2026. Webcast: 
https://www.corpcam.com/Altron02112026Invitation. Results presentation and SENS 
announcement: www.altron-investors.com.

Note 1: Commentary included in this announcement relates to continuing operations, comparing HY27 to the prior 
comparative period, HY26, unless stated otherwise. Continuing operations include Netstar, Altron FinTech, Altron 
HealthTech, Altron Digital Business, Altron Security, Altron Document Solutions and Altron Arrow. Altron Nexus, disposed 
of on 1 August 2025, is excluded. EBITDA and operating profit are stated before capital items.

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