JSE-listed infrastructure and construction materials group Raubex released its unaudited interim results for the six months ended 31 August 2026 on Monday, 9 November. The results show a group benefiting from renewed infrastructure spending, while taking a decisive step to exit the mining business that has weighed on its earnings.
Revenue up, margins under pressure
Raubex reported an 11.8% increase in revenue to R12.12 billion. Operating profit rose more modestly, by 2.5% to R618 million, and earnings per share came in at 266.9 cents.
The gap between revenue growth and profit growth reflects a difficult operating environment. Management said geopolitical tensions drove up input costs that could not all be recovered through sales prices. Conflict in the Middle East has kept fuel and logistics costs elevated, squeezing margins across the construction sector.
Cash generation was a clear strength. Cash generated from operations more than doubled to R1.56 billion. The group held cash and cash equivalents of R1.89 billion and reduced its borrowings by 12.4% to R2.40 billion.
A record order book
The standout figure is the order book, which rose 24% to R39.00 billion, up from R31.46 billion at the end of the previous financial year.
The pipeline reflects renewed tender activity across several areas of infrastructure. Raubex is executing projects in battery storage, solar PV, wind energy and water infrastructure. The group has been named preferred bidder for the Limpopo border post project, and its building arm has secured civil works on the Gautrain project, with scope for that work to expand.
Roads, infrastructure and the group’s Australian operations all performed well during the period, with Australia delivering a strong turnaround.
The decision to sell Bauba Resources
The most significant strategic announcement concerns Bauba Resources, the chrome and platinum group metals mining business in which Raubex holds an interest.
Following a strategic review, Raubex has decided to pursue the sale of its full interest in Bauba Resources. CEO Felicia Msiza said the decision would sharpen the group’s focus on its core infrastructure operations and free up capital to pursue growth opportunities.
The decision follows a year of uncertainty. Raubex first told shareholders in December 2025 that it was assessing a possible disposal of all or part of its shareholding in Bauba, and it renewed cautionary announcements several times during 2026.
Bauba’s performance has been volatile. In the financial year to February 2026, it delivered a strong turnaround, moving from an operating loss of R235.8 million to an operating profit of R243.7 million. In the latest six months, however, the Materials Handling and Mining division recorded an operating loss, mainly because of operational issues at Bauba and pressure from commodity prices and costs.
Management expects the division to remain under pressure until the disposal is completed.
Rewarding shareholders
The board declared an interim cash dividend of 88 cents per share, up 8.6% from 81 cents a year earlier. The last day to trade cum dividend is Tuesday, 24 November 2026, shares trade ex dividend from Wednesday, 25 November, the record date is Friday, 27 November, and payment will be made on Monday, 30 November 2026.
The market gave the results a cautious reception, with the share price falling 2.72% to R42.97 on the day of release.
What it means for the mining and construction sector
Raubex’s results offer several insights for the broader mining and construction sector.
First, infrastructure spending is recovering. A 24% increase in the order book within six months points to a meaningful rise in tender activity, particularly in energy, water, rail and roads. Contractors and suppliers positioned in these areas stand to benefit.
Second, the renewable energy build-out continues to generate significant work. Battery storage, solar and wind projects now form an important part of the pipeline for South African construction groups.
Third, Raubex’s decision to exit Bauba reflects a broader trend of diversified groups returning to their core strengths. Owning mining assets exposes construction groups to commodity price cycles that can swing results sharply in either direction.
Fourth, input cost inflation remains a serious challenge. Contractors bidding on long-term projects need robust escalation clauses and careful cost management to protect margins.
The outlook
Raubex enters the second half of its financial year with a record order book, strong cash generation and a clearer strategic focus. The successful disposal of Bauba Resources will be the key milestone to watch, as it will determine how quickly the group can concentrate fully on infrastructure growth. Shareholders will look for further announcements on SENS.
Source: Raubex Group, Unaudited Interim Results for the six months ended 31 August 2026 – https://www.raubex.com/index.php/investor-relations/financial-results
