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.

Altron has provided a range for the expected EPS outturn for H126, with headline EPS (HEPS) from continuing operations expected to increase 16–24% y-o-y to ZAR0.92–0.98. Full results are due to be published on 3 November.

For H126, Altron has seen the benefit of a diversified portfolio in a challenging market environment. The IT Services business has suffered from constrained IT budgets and price pressure, with an operating loss expected for Altron Digital Business (ADB). The Platforms business conversely saw double-digit revenue growth and strong growth in EBITDA, and a change in depreciation policy in Netstar further boosted operating profit. We have revised our forecasts to reflect a weaker outlook for ADB, a better performance for Altron Fintech and Altron Security, and a longer depreciation period for Netstar devices, driving upgrades to continuing HEPS of 10.3% in FY26 and 9.5% in FY27.