Grindrod Limited posted a 52% surge in EBITDA to R884 million in the six months ended June 30, 2026, as port and terminal divisions offset weaker logistics performance. Revenue rose 19% to R2.84 billion, while headline earnings remained flat at R593 million.
The Port and Terminals division accounted for 90% of group headline earnings, generating R535 million on revenue of R1.48 billion. EBITDA margins expanded to 43%, up from 31% across the group. Throughput at the Port of Maputo increased 8% to 15.28 million tonnes, with own-handled volumes up 29% to 8.42 million tonnes. Daily truck movements into Maputo averaged 868, while rail movements remained stable at three trains per day.
In contrast, the Logistics division saw revenue decline 8% to R1.27 billion, with EBITDA contracting to R120 million from R248 million a year earlier. EBITDA margins compressed to 9% as rail locomotive utilization fell to 46%, though management expects this to improve to 65% in the second half of 2026.
Cash generated from operations rose 28% to R561 million, while the interim dividend increased 6% to 24.3 cents per share. Net cash declined 7% to R3.6 billion, and total debt decreased to R3.1 billion. The company maintained its dividend cover policy at 3.0 to 4.0 times headline earnings, with cumulative dividends declared since 2022 totaling R2.4 billion.
Capital expenditure totaled R206 million in H1 2026, with R137 million allocated to growth projects and R69 million to maintenance. Authorized capex for 2026 H2 through 2029 is set at R1.01 billion, primarily directed toward logistics and port expansions. The company also refinanced R1.2 billion in long-term debt, targeting cost savings of R40–50 million over the tenure.
Management highlighted ongoing initiatives, including the Maputo Port dredging program slated to begin in H2 2026 and the Matola terminal Phase 01 expansion, expected to complete in Q1 2027. The South African Rail Open Access test train is scheduled before year-end 2026, with full operations commencing in April 2027.
Group CEO Kwazi Mabaso noted the first half demonstrated the resilience of the asset base and the quality of growth opportunities ahead.
