Altron — Strong earnings growth in FY26

Altron (JSE: AEL)

Last close As at 11/02/2026

ZAR19.40

0.00 (0.00%)

Market capitalisation

ZAR8,028m

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Research: TMT

Altron — Strong earnings growth in FY26

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.

Katherine Thompson

Written by

Katherine Thompson

Director

Software and comp services

Year-end trading update

12 February 2026

Price ZAR19.40
Market cap ZAR8,028m

Net cash/(debt) at end H126

ZAR(76.0)m

Shares in issue

413.8m
Free float 35.7%
Code AEL
Primary exchange JSE
Secondary exchange N/A
Price Performance

Business description

Altron is a South African provider of platforms and IT services. The company operates via three divisions: IT Services, Platforms and Altron Arrow. In FY25, 90% of revenue was generated in South Africa and annuity revenue made up 63% of total revenue.

Analyst

Katherine Thompson
+44 (0)20 3077 5700

Altron is a research client of Edison Investment Research Limited

Note: Revenue, PBT and diluted EPS are for continuing operations. PBT and EPS are normalised, excluding amortisation of acquired intangibles and exceptional items. HEPS: basic continuing headline EPS.

Year end Revenue (ZARm) PBT (ZARm) EPS (ZAR) HEPS (ZAR) DPS (ZAR) P/E (x) Yield (%)
2/24 9,603.0 570.0 1.04 1.03 0.58 18.7 3.0
2/25 9,588.0 912.0 1.83 1.78 0.90 10.6 4.6
2/26e 9,591.0 1,034.2 1.92 1.95 0.95 10.1 4.9
2/27e 10,176.8 1,149.1 2.15 2.22 1.08 9.0 5.5

Altron has published a trading statement for the year ending 28 February 2026 (FY26) as it has a reasonable degree of certainty that the financial results for the year will differ by at least 20% compared to the prior year.

HEPS from continuing operations is expected to be at least 30% higher or at least 231c (our forecast: 195c, FY25: 178c), while EPS from continuing operations is also expected to be at least 30% higher or at least 203c (our forecast: 181c, FY25: 156c).

Group HEPS is expected to be at least 50% higher or at least 201c (our forecast: 186c, FY25: 134c), while group EPS is also expected to be at least 50% higher or at least 155c (our forecast: 162c, FY25: 103c).

The company expects to release a further trading statement with more specific guidance ranges for HEPS and EPS once audit and governance processes have progressed to provide a reasonable degree of certainty. Altron will publish a voluntary operational update and host a virtual pre‑close investor call for FY26 on 24 February 2026 at 2:00pm CAT.

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