Top technology firm in South Africa expects double-digit earnings growth
South African technology company Altron published a trading statement for the year ended 28 February 2026 on Thursday, notifying shareholders that it expected to report significant earnings growth.
Altron announced that the group’s headline earnings per share, a measure of company profitability, are expected to increase by 68% to 74% in its 2026 financial year.
The group includes technology firms like Netstar, Altron FinTech, Altron HealthTech, Altron Digital Business, Altron Security, Altron Document Solutions, and Altron Arrow.
It stated that it expected to report group headline earnings growth of 225 to 233 cents per share in its upcoming annual financial results.
Meanwhile, group earnings per share are set to increase by 187 cents to 193 cents, with an expected change of between 82% and 87%.
Headline earnings per share of its continuing operations is also expected to grow between 31% and 37%, while earnings per share will see a similar increase.
This latest trading update provided a clearer picture of what investors can expect from its yearly performance, as outlined in its upcoming results.
In February, the company reported that its operating profit grew by more than 20% in its 2026 financial year, supported by strong performance in its Netstar vehicle-tracking business.
At that time, it indicated that its headline earnings per share and earnings per share from its companies were expected to increase by 30%.
“Continuing operations delivered low double-digit Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) growth year-to-date, and operating profit growth greater than 20%,” it said.
“Excluding the change in Netstar’s depreciation policy, operating profit increased in the low-to-mid-teens.”
Altron said that the performance was a result of disciplined focus on execution of its strategy across all businesses and reflected the benefit of a diversified portfolio, despite varying operating conditions.
“Deliberate focus on deployment of capital into higher-margin, annuity-revenue growth opportunities continued in H2 FY2026, with further improvement in operating leverage,” it said.
“Year-to-date, Altron’s Platforms segment has contributed approximately 45% to revenue, and approximately 90% to both EBITDA and operating profit.”
Despite this, the group’s overall revenue in H2 2026 was negatively impacted by continued poor performance at Altron Digital Business, the company’s IT services division.
“The constrained operating environment for IT Services persisted in H2 FY2026 and is in line with market trends observed in South Africa and globally,” it said in February.
It said that there were still early signs of improvement after the implementation of a comprehensive profit-improvement strategy and restructuring in December 2025.
Vehicle tracking business showing signs of success in Australia
Altron’s platforms include the Netstar business, which it said at the time recorded “robust” double-digit revenue growth.
It said the vehicle and asset-tracking company delivered strong performance thanks to solid growth in South Africa and early progress in its Australian arm.
“Excluding the change in Netstar’s depreciation policy, operating profit increased in the high teens, in line with EBITDA growth,” it said.
In April, Netstar announced the appointment of Warren Mande as its new managing director, effective 1 July 2026.
It followed the resignation of incumbent director Grant Fraser, who is emigrating to Australia with his family, the company reported.
Altron Group CEO Werner Kapp said Mande is exactly the right person to lead the vehicle-tracking firm into its next chapter with his ability to “deliver operational excellence.”
“We will continue to leverage cutting-edge technology and data-driven innovation to strengthen our leadership in the industry, while building on the momentum Grant has created,” added Kapp.
Fraser and Mande embarked on a transition period through 30 June 2026 to ensure a seamless handover and the comprehensive onboarding of the new managing director.
Loading ...