In its pre-close operational update, Altron provided more detail on year-to-date performance (11 months to 31 January 2026), confirming that EBITDA from continuing operations grew in the mid-teens and operating profit grew more than 20% compared to the same period in FY25. We estimate that better profitability in Altron FinTech, Altron HealthTech and Altron Document Solutions are the main drivers of upside. We have upgraded our forecasts to reflect the stronger than expected performance so far in H226, lifting continuing headline EPS (HEPS) by 18.5% in FY26 and 7.3% in FY27.

Altron’s FY26 trading update confirms that headline EPS (HEPS) and reported EPS will be significantly ahead of FY25, with continuing operations at least 30% higher and the group at least 50% higher. The minimum expected results are also ahead of our forecasts, with HEPS from continuing operations at least 18% higher and group HEPS 8% higher. The company expects to provide more specific guidance on 24 February when it will publish a pre-close operational update. Pending further detail on underlying performance, we maintain our forecasts.

Altron reported stable results despite the previously flagged weakness in Altron Digital Business (ADB). While revenue declined 1% y-o-y, EBITDA grew 4% and, helped by the change in depreciation policy at Netstar, operating profit before capital items increased 15%. Basic headline EPS (HEPS) from continuing operations was 22% higher year-on-year, supporting a 20% increase in the interim dividend to ZAR0.48. We have revised our forecasts to reflect a stronger performance in the Platforms business partially offset by a lower contribution from IT Services and Distribution. We lift our basic HEPS from continuing operations by 5.3% in FY26 and 1.0% in FY27.