Argent Industrial reports strong interim result with 11.7% dividend increase

Argent Industrials' share price leapt over 7% on Friday after it reported an 11.7% increase in the interim dividend to 67 cents a share.

Revenue increased 12.4% to R1.42 billion for the six months to September 30. Earnings before interest, tax, depreciation, and amortisation (EBITDA) was up 13.2% to R229.84 million. Profit increased 12.7% to R146.98m

Headline earnings a share increased by 13.3% to 261.7 cents. The share price traded at R32 on Friday afternoon on the JSE, up from R27.05 a year before. Net asset value at September 30 was 3,654.9 cents a share.

“These strong results underscore the effectiveness of our disciplined capital allocation strategy and continued investment in high-performing international operations. Argent’s focus on operational efficiency, strategic diversification, and prudent financial management continues to support sustainable value creation,” directors said on Friday.

Some R1.2bn of external sales revenue was generated by the manufacturing segment, R198.78m in the steel trading segment, while R524 000 was generated in revenue from properties.

With operations across South Africa, the UK, Canada, and the US, Argent allocates capital from existing businesses into new opportunities to create long-term shareholder value. The group products and services are exported to more than 38 countries.

The South African operations generated “robust” contributions across multiple sectors: Leading brands Xpanda, American Shutters, and Jetmaster benefited from growing local and international demand, directors said.

Xpanda would extend its manufacturing facility by 1 100 square metres in the next year. Jetmaster purchased a new Fibre Laser. Castor and Ladder introduced innovative products and expanded their product rental offering via its five branches.

Hendor Mining and Koch’s Cut & Supply specialise in mining and engineered steel solutions. Megamix and Villiersdorp Quarry achieved “significant” year-on-year growth, prompting additional investment in batch plant and fleet capacity, they said.

In the UK, the subsidiaries continued to “thrive through innovation and strategic expansion.” Growth was being driven in fuel storage and refuelling systems, particularly in the aviation sector.

Mersey Container, a modular building specialist, had secured an additional covered manufacturing facility with 6 000 square metres under cover, with access expected at the end of March 2026. Existing output needed to be expanded from August 2026.

In the US, Joules Engineering, a manufacturer of speed control systems for classification rail yards, generated returns well ahead of the previous year. Xpanda Canada was expanding the brand in the US.

The UK fuel-related businesses were being expanded into electric and hybrid fuel transfer solutions, in line with global sustainability trends. A modular system design would allow clients to select between full-electric or hybrid configurations. Additionally, the rental model for refuelers and dispensers continued to generate recurring, self-financing revenue streams across the UK and Europe.

Re-investment within Fuel Proof had stood the business in good stead, allowing for further growth in the product range focused on the aviation sector.

The South African steel businesses had mixed results, with Phoenix Steel Gauteng continuing its poor performance, incurring a loss of R2.6m versus a R5.9m loss the year before. There was work to be done to optimise capital utilisation more efficiently, the directors said.

During the period, Xpanda Canada was integrated into the group and was performing above expectations, achieving a payback within one year of acquisition. The group was looking for additional international acquisitions, the directors said.

“Our international order book remains strong. Domestic operations are robust with potential for further recovery. Attractive opportunities exist to allocate capital to acquisitions… Argent Industrial is well-positioned to deliver satisfactory results in the 2026 financial year and into the long term,” the directors said.

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