Altron rewards shareholders with a R500 million special dividend after profit jumps 25%

HEPS up 34%, final dividend up 44%, plus a R500 million special dividend as the three-year Foundational and Accelerated Growth Strategy pays off.

Johannesburg, 25 May 2026 - Altron Limited (JSE: AEL) today reported a 25% rise in operating profit to R1.2 billion for the year to 28 February 2026, capping a three-year strategic overhaul that has tripled HEPS and shifted the group decisively towards platform-based businesses.

Commenting on FY26 performance, Group CEO Werner Kapp said, “We have delivered a strong full-year result in FY26, with EBITDA of R2.0 billion, operating profit of R1.2 billion and cash generated from operations of R1.9 billion. The operational momentum established in the first half of the year provided a solid foundation for an even stronger second-half performance. HEPS increased by 34% to 239 cents per share and, supported by the strong balance sheet and cash flow generation, the Board was able to increase the final ordinary dividend by 44% to 72 cents per share and declare a special dividend of 120 cents per share.”

Revenue edged up 1% to R9.6 billion, as 12% growth in the Platforms segment offset weaker conditions in IT Services.

Accelerated Growth phase complete

FY26 marks the end of the second phase of the strategy Kapp’s team set out in 2023, which focused on Foundational and Accelerated Growth. Over the last three years, operating profit has grown at a 34% CAGR, HEPS at a 48% CAGR, and dividends at a 51% CAGR. Return on invested capital has jumped from 7% to 23% since FY23, reflecting disciplined capital allocation and a portfolio repositioning towards high-quality, platform-based businesses.

Altron has invested more than R1.8 billion in growth CAPEX over the three-year period, primarily into its platform businesses, and ended FY26 with R1.3 billion in cash and over R1 billion in undrawn facilities, providing substantial flexibility for continued organic and selective inorganic growth.

"We have built a strong foundation and established a track record of execution," Kapp said. "As we enter our next phase - Transformative Growth - Altron has transformed into a multi-platform company, uniquely positioned to drive sustainable growth in South Africa’s digital economy, supported by an ungeared balance sheet and a higher-quality, annuity-driven earnings base.

I am excited by the growth opportunity of our platform businesses in a market underpinned by digitisation in mobility, payments and identity, areas where Altron has years of experience, meaningful scale and embedded infrastructure. Our focus continues to be to invest in and expand these businesses, execute on our strategic objectives and sustain a resilient, diversified earnings base.”

FY26 Performance Highlights

Platforms

Altron FinTech - Standout Performer

Altron FinTech was the standout performer in FY26, delivering an operating profit of R561 million - up 33% year-on-year and representing more than a doubling of operating profit over three years from R233 million in FY23. Strong operating margins of 37% and annuity revenue of 88% of total revenue underpin the quality of earnings. The collection and payment platform saw debit order volumes and values grow well over 25%, while Point of Sale (POS) device rentals more than doubled to over 30 000, driving annuity growth.

Netstar - Crosses R1 Billion EBITDA Milestone

Netstar crossed the R1 billion EBITDA threshold for the first time, delivering 16% EBITDA growth with margins expanding 256 bps to 44%. The subscriber base grew 9% to 2.2 million, with enterprise customers growing 19% and churn (excluding OEMs) falling from 19% to 16%. The South African business delivered 17% year-on-year EBITDA growth, with an EBITDA margin of 49%. Netstar has grown its subscriber base from 1.38 million in FY23 to 2.2 million, a 17% CAGR over three years.

Altron HealthTech - Strong Second-Half Performance

Altron HealthTech increased operating profit by 19% to R143 million, with annuity revenue rising to 96% of total revenue. The direct private practice network delivered high-single digit growth, with more than 2 000 new practices added during the period. The adoption of data-driven services continues, particularly with the launch of the patient app in Altron’s oncology platform.

IT Services

Altron Digital Business - A Tough Environment

Altron Digital Business faced headwinds in FY26, with revenue down 8% and a loss-making first half. Decisive management intervention delivered a profitable second half, with the business closing the year with an operating profit of R7 million and a stronger pipeline. Recovery remains ongoing, with performance sensitive to broader conditions in the IT services market.

Altron Security - A Solid Performance

Altron Security grew revenue 4% to R411 million and operating profit 5% to R90 million, supported by its annuity-based platform and digital signing businesses, which comprise 80% of revenue. The long-term opportunity in digital identity and public key infrastructure remains compelling.

Altron Document Solutions - Remarkable Turnaround Complete

Altron Document Solutions delivered an outstanding performance, achieving an operating profit of R98 million in FY26 - up 61% year-on-year and a remarkable recovery from an operating loss of R97 million just two years prior. Software and digital solution sales more than doubled, reflecting the successful transition to higher-margin managed services and decisive operational leadership.

Results presentation

An investor presentation will be webcast at 09h30 on 25 May 2026.

Webcast link: https://altron-investors.com/

SENS announcement link: https://altron-investors.com/sens-announcements.php

Note 1 - Continuing operations include Netstar, Altron FinTech, Altron HealthTech, Altron Digital Business, Altron Security, Altron Document Solutions and Altron Arrow. Altron Nexus is excluded.

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