Transnet reported improved financial results for the six months ended 30 September 2025, supported by higher volumes across several business units. The increase in activity contributed to higher revenue and earnings before interest, taxes, depreciation, and amortisation, while the net loss for the period narrowed.
The interim results, released on Friday, show that revenue rose by 8.8% to R45.2 billion (US$2.44 billion), compared with R41.5 billion (US$2.24 billion) in the same period last year. The increase was linked to higher rail, container, and petroleum volumes, as well as weighted average tariff increases in the port and pipeline operations.
Rail volumes increased by 4.4% to 81.4 million tons, compared with 78.0 million tons in the prior period. According to Transnet, volume performance has followed an upward trend since the 2024 financial year. September 2025 recorded a monthly throughput of 14.8 million tons, the highest monthly level since the 2022 financial year, despite maintenance shutdowns that affected manganese volumes.
As a result of the higher throughput, Transnet reported a 17.7% reduction in its net loss to R1.8 billion (US$97.3 million), from R2.2 billion (US$118.9 million) a year earlier. Earnings before interest, tax, depreciation, and amortisation increased to R15.7 billion (US$848.6 million), representing a 15.6% increase compared with the prior period. The EBITDA margin rose to 34.8%, up from 32.8%, reflecting the higher volumes handled.
Capital investment during the interim period totalled R11.0 billion (US$594.6 million), a 5.0% increase compared with the previous year. Of this amount, 18.3% was allocated to capacity expansion, while 81.7% was directed towards maintaining existing capacity. Transnet stated that investment priorities include improving rolling stock availability and addressing the condition of rail infrastructure. The acquisition of port equipment continued during the period and contributed to operational changes within the port business.
Net finance costs increased by 7.7% to R7.7 billion (US$416.2 million), compared with R7.1 billion (US$383.8 million) in the prior period. This was mainly due to an increase in total debt levels.
Transnet indicated that it plans to use private sector participation to support efficiency improvements and capital investment. At the same time, theft, vandalism, and security incidents remain ongoing challenges. The company said it continues to work with law enforcement agencies to address these issues while implementing its Reinvent for Growth strategy and focusing on resolving operational constraints.
Source: SA News
