Johannesburg: Transnet's interim results for the six months ended 30 September 2025 reflect an improved financial performance, driven by higher volumes across the business, which boosted revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA), while reducing the loss for the period.
According to South African Government News Agency, Transnet's interim results, which were released on Friday, indicate that revenue for the reporting period increased by 8.8% to R45.2 billion (2024: R41.5 billion). This increase aligns with higher rail, container and petroleum volumes and weighted average tariff increases in the port and pipeline businesses.
Transnet Group Chief Executive, Advocate Michelle Phillips, stated, "Transnet's volume performance has been on an upward trajectory since the 2024 financial year." The company showed sustained improvements, with rail volume performance increasing by 4.4% to 81.4 mt (2024: 78.0 mt).
Performance improvements are evident through increased tonnage throughput, with September 2025 recording an annual high of 14.8 mt, the highest monthly performance since the 2022 financial year, despite the annual maintenance shutdown affecting manganese volumes. This resulted in a 17.7% improvement in the reported net loss of R1.8 billion (2024: R2.2 billion).
Phillips highlighted that the company will leverage private sector participation to improve efficiency and fund capital investment requirements. "Transnet remains committed to its role in supporting South Africa's economic recovery and is focused on delivering efficient, world-class logistics services for the benefit of the country."
Projects aimed at improving rolling stock availability and rail infrastructure condition will be prioritized. The acquisition of key port equipment has gained momentum, contributing to notable performance improvements within the port business.
The Board and management are implementing the Reinvent for Growth Strategy, focusing on resolving operational challenges to ensure sustainable profitability. Theft, vandalism, and security incidents continue to pose challenges, and Transnet, in collaboration with law enforcement agencies, is addressing these issues.
Key highlights include capital investment for the interim period amounting to R11.0 billion, a 5.0% increase in capital expenditure compared to the prior period. Expansion of capacity accounted for 18.3% of the expenditure, while 81.7% was invested to maintain current capacity.
Earnings before interest, tax, depreciation, and amortisation increased to R15.7 billion, a 15.6% increase from the prior period. The EBITDA margin at 34.8% is above the prior period's 32.8%, owing to volume improvements. Net finance costs increased by 7.7% to R7.7 billion (2024: R7.1 billion), mainly due to the increase in total debt compared to the prior period.