Transnet narrows Losses to R1.9bn from R7.3bn as Rail Volumes Surge

Transnet has managed to slash its annual losses for the 2025 financial year, cutting them down to R1.9 billion from the R7.3 billion recorded in 2024. The improvement comes largely from a strong recovery in rail, where Transnet Freight Rail (TFR) moved more than 10 million additional tons during the year.

Group CFO Nosipho Maphumulo, speaking at the results presentation on the JSE on Friday, said revenue climbed 7.8% to R82.7 billion, while Ebitda jumped 39.4% to R30.6 billion.

“TFR, which makes up more than half of the group’s business, showed a strong recovery. Rail is a proxy for performance – and the unit delivered around 54% of profit this year,” she noted.

Despite the improved performance, Maphumulo admitted Transnet’s high debt remains a serious challenge. “If we did not owe money, we would have declared a profit of at least R15 billion. Our debt load of about R144.7 billion still weighs heavily on the business,” she said.

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Transnet CEO Michelle Phillips said the results reflect that the group’s turnaround strategy is working, but stressed there is still a long way to go. “Revenues are rising, losses are narrowing. When Transnet works, South Africa thrives – and we are getting there,” she said.

Key financial highlights:

• Revenue up 7.8% to R82.7bn
• Ebitda up 39.4% to R30.6bn
• Loss narrowed 74% to R1.9bn
• Capital investment rose 44.2% to R24bn
• Debt stands at R144.7bn, with gearing at 49.6%

The group’s debt burden has already triggered a ratings downgrade from S&P Global in July and a review for downgrade by Moody’s in May. However, National Treasury’s decision to extend R95 billion in government guarantees in late July has provided some breathing space.

Phillips acknowledged that not all performance targets were met but insisted the overall trajectory is positive. “The numbers speak for themselves. We need to celebrate the 74% improvement from where we were last year,” she said.