Metair Investments reported an 8% increase in EBITDA to R760 million for the first half of 2026, alongside a 1% rise in EBIT to R444 million, as the company neared the end of a multi-year restructuring phase.
The Johannesburg-listed group maintained revenue at R8.5 billion, with earnings per share from continuing operations turning positive to 70 cents from a 90-cent loss in the same period last year. Headline earnings per share rose 4% to 71 cents. Net debt decreased to R4.3 billion from R5.0 billion at the end of 2025, while cash on hand increased to R620 million.
CEO Paul O'Flaherty said the company had moved from stabilization to growth mode. "We went through the hard yards in 2024, then really looked at our operations in 2025 and made sure we had stability. Now we really are in the growth phase for Metair," he stated. CFO Alastair Walker noted that a key EBITDA covenant tied to the group's previous debt structure had been removed as part of a refinancing completed in April 2026.
The R3.3 billion refinancing of South African debt extended maturities to March 2031. Capital expenditure totaled R244 million in the period, with expansion projects rising to R172 million. Full-year capex is expected to reach R733 million before normalizing to R400–450 million annually from 2027 onward.
Revenue from automotive component manufacturing, which accounts for 67% of group sales, rose 4% to R5.7 billion, with EBIT up 12% to R433 million. The wiring harness business Hesto reported a 17% revenue decline to R2.6 billion and a 36% drop in EBIT to R136 million, while other OEM units saw revenue fall 3% but EBIT surge 30% to R297 million.
Aftermarket parts revenue increased 6% to R1.9 billion, though EBIT remained flat at R54 million. First Battery volumes rose by 5,000 units to 775,000, while AutoZone narrowed its EBIT loss to R21 million. Rombat's European battery operations posted a 21% revenue decline to R955 million but maintained EBIT near R52 million.
The South African light vehicle market grew 12.9% year-on-year in H1 2026, with import penetration rising to 69% of sales. Locally produced vehicles accounted for 31% of the market, down from 44% in 2021. Toyota, Volkswagen and BMW reported volume gains, while Ford's sales declined.
