Stefanutti Stocks has released its results for the six months ended 31^st August 2025, reporting an increase in contract revenue to R3.7 billion (August 2024: R3.6 billion) and an improvement in its operating profit to R161 million (August 2024: R132 million).

The Group’s EBITDA increased to R232 million from R166 million for the comparative period due to its improved operating performance with its current book order R13.4 billion (February 2025: R8.6 billion) of which R4.2 billion arises from work outside of South Africa (February 2025: R1 billion).

In its February 2025 results, Stefanutti advised shareholders that its lenders had extended its capital repayment profile of the current loan as well as its duration to 30^th June 2026.

“Subsequently, the group, through its primary operating subsidiary, concluded a new five-year term facility agreement amounting to R850 million with Standard Bank. On 31st October 2025, the current loan was settled, terminating the historic arrangement with the lenders and the restructuring plan. The facility will be repaid in 19 equal quarterly instalments starting in February 2026 and continuing until August 2030,” says CEO Russell Crawford.

Regarding the Dispute Adjudication Board’s award for Claim 5 amounting to R685 million (excluding VAT) to Stefanutti Stocks, Eskom issued a notice of dissatisfaction and indicated that it intended to have the award set aside in totality by the High Court of South Africa. If successful, Claim 5 would be referred to arbitration, thereby recommencing the entire claims process.

“As stated in the SENS announcement on the 17^th of October 2025, the contract provided for amicable settlement prior to the commencement of an arbitration process. Consequently, after careful deliberation, the Board of Stefanutti Stocks considered it appropriate to approach Eskom with a view to reaching a settlement with respect to Claim 5, Claim 6, and Eskom’s delay damages claim for late completion,” says Stefanutti.

Subsequently, on the 24^th of November 2024, Stefanutti Stocks and Eskom signed a full and final settlement agreement for an amount of R580 million (excluding VAT), which constitutes a mutual release of all actual or potential claims, disputes, or entitlements either party may have against the other arising or in connection with the contract. In terms of the settlement agreement, Eskom must pay the total amount by the 12^th of December 2025.

In terms of Stefanutti’s facility with Standard Bank, it says it will, by the end of February 2026, apply at least 80% of the proceeds from the settlement against the outstanding facility.

Crawford says that the Company’s SS Mozambique disposal is progressing in accordance with the announcement made on the 9^th of July 2025, with only US$ 4.5 million remaining outstanding, which is due by the end of December 2025.

The Company’s inland region recorded an increase in its contract revenue and operating profit to R2 billion (August 2024: R1.5 billion) and R153 million (August 2024: R81 million) respectively with the inland’s book order as of August 2025 R4.5 billion (August 2024: R4.3 billion).

Its coastal region’s contract revenue was R827 million (August 2024: R1 billion) with an improvement in the operating profit to R44 million (August 2024: R33 million) with the order book as of August 2025 R1.6 billion (August 2024: R1.9 billion).

The Western Cape’s contract revenue was R378 million (August 2024: R427 million) with an operating profit of R20 million (August 2024: R31 million) which was impacted by delays in project awards. The region’s order book as of August 2025 was R3.4 billion (August 2024: R1.6 billion).

Its ‘Africa’ region’s contract revenue was R412 million (August 2024: R722 million) with an operating loss of R7 million (August 2024: R37 million). Stefanutti says these results were severely impacted by the delay in project awards, resulting in an under recovery of overheads and holding costs. Africa’s order book as of August 2025 was R3.7 billion (August 2024: R1.4 billion).

Its Board resolved not to declare a dividend for the period (August 2024: nil).