Raubex Group’s share price shot up 8.8% on Monday after the infrastructure, development, and construction materials supply group reported a strong balance sheet, a healthy cash balance, and a solid R28.28 billion order book for the year to end-February 28, 2025.
“Despite ongoing geopolitical tensions across the globe, and the many local challenges we are all so familiar with, Raubex prevailed to deliver another robust set of results,” Felicia Msiza, the CEO of Raubex, said in a statement. The order book increased by 10.3%.
She said their diversification strategy has been a big reason for their strong performance over the past five decades. The share price traded at R44.42 on the JSE Monday morning, having gained just over 25% over a year.
Raubex’s results were delayed on May 9, 2025, to allow for an investigation into an anonymous whistleblower report that contained allegations of improper conduct, but the group announced separately Monday that a detailed fact-finding exercise by independent external advisors had been conducted, and no evidence of unlawful conduct or ethical impropriety was found.
Msiza said over the past year, three of four divisions reported improved results, with the Materials Handling and Mining Division encountering various operational and trading challenges.
“By broadening our horizons and creating a resilient business model, we have strengthened our position across various sectors and unlocked opportunities,” she said.
Revenue increased 21% to R21.08bn. Operating profit rose 1.3% to R1.56bn, although the operating margin came under pressure, mainly due to subsidiary Bauba Resource’s performance, and reduced to 7.4% (2024: 8.8%).
Challenges in the Materials Handling and Mining Division had an adverse impact on Bauba Resources, but were countered by good performances of other operations in this division.
Revenue for the Materials Handling and Mining Division increased 20.1% to R4.83bn. Operating profit fell by 86.2% to R80.7m, mainly due to the underperformance of Bauba Resources’ mining operations.
“It was a year of two halves for this business, with the second half being weaker than the first half, mainly due to the deterioration of the chrome price. We are still positive about the outlook of Bauba’s operations for the 2026 financial year and beyond,” said Msiza.
The chrome price recently recovered to more sustainable levels, she said. Operations were also expected to be running closer to full capacity, and measures were in place to lower the cost base.
The successful commissioning of the chrome ore wash plant and crushing circuit at Kookfontein mine contributed to an increase in revenue in the past year, she said.
Revenue and operating profit for the Construction Materials Division increased 10.6% to R2.68bn and 147.1% to R284.2m, respectively.
This was attributed to robust existing contracts and clients, together with new road construction contracts awarded at the end of the 2024 financial year. These contracts significantly increased demand for bitumen and asphalt volumes.
The aggregate volumes saw strong growth in the second and third quarters, but adverse weather saw a reduction in the fourth quarter.
Revenue in the Roads and Earthworks Division increased by 19.9% to R6.80bn. Operating profit increased 77.1% to R587.2m due to an emphasis on effective execution.
Revenue for the Infrastructure Division increased by 27.4% to R6.78bn, and operating profit increased 19.6% to R604.3m. This was mainly attributable to new contracts secured in South Africa as well as a solid set of results delivered by Western Australia.
Revenue and operating profit for the Rest of Africa International segment increased by 26.3% to R1.26bn and by 44.8% to R274.4m, respectively. The main reason was a solid performance of the Botswana Bela-Bela quarry.
Operations in Western Australia continued to perform well, with significant progress in renewable energy projects awarded earlier this financial year. Revenue increased 3.4% to R3.43bn and operating profit was up 9.1% to R303.9m.
“The group holds a more positive outlook for the 2026 financial year, driven by the encouraging opportunities within each division. The secured order book of R28.18bn serves as a strong indicator of the group’s future potential,” said Msiza.
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