Transnet posted a R4.6 billion profit for the year ended March 31, 2026 — its first in four years — reversing a R1.9 billion loss. Revenue rose 7.1% to R88.6 billion, driven by 4.9% higher rail volumes (167.9 million mt) and 6.9% growth in pipeline volumes (14.3 billion litres). EBITDA edged up 0.7% to R30.9 billion, while net operating expenses jumped 10.8% to R57.7 billion. A R12.5 billion gain from the sale of a 49.999% stake in Durban Gateway Terminal contributed significantly. CEO Michelle Phillips noted rail volumes remain short of the 180 million mt break-even target. Borrowings reached R150.7 billion, and R129.1 billion is earmarked for capital investment over five years.
According to news.metal.com, South Africa’s state-owned freight logistics group Transnet reported a R4.6 billion profit for the financial year ended March 31, 2026 — its first annual profit in four years and a reversal from a R1.9 billion loss in the prior year.
Rail and pipeline growth drive revenue
Revenue rose 7.1% to R88.6 billion, supported by higher rail and pipeline volumes as well as weighted average tariff increases. Rail volumes — handled by Transnet’s largest operating division — increased 4.9% to 167.9 million mt from 160.1 million mt a year earlier. Pipeline volumes grew 6.9% to 14.3 billion litres.
EBITDA, expenses, and one-off gains
EBITDA rose 0.7% to R30.9 billion, though the EBITDA margin narrowed by 2.2 percentage points to 34.8%. Net operating expenses increased 10.8% to R57.7 billion. A substantial portion of the profit stemmed from a once-off transaction: Transnet disposed of a 49.999% interest in the Durban Gateway Terminal to International Container Terminal Services Inc. for R10.5 billion, effective January 1, 2026, generating a R12.5 billion profit on disposal including a related fair value adjustment.
Recovery challenges and infrastructure investment
CEO Michelle Phillips said the company still has a long way to go in its recovery, noting that rail volumes remain below the previously announced 180 million mt target — which she described as a prerequisite for the underlying business to break even. Borrowings rose to R150.7 billion, and capital investment totalled R23.3 billion during the year, with a further R129.1 billion planned over the next five years.
Rail access reform and chrome sector relevance
Transnet reported progress on opening its rail network to third-party operators, having concluded Rail Access Agreements with 11 train operating companies, with the first services expected to commence during the 2026/27 financial year. The results carry relevance for South Africa’s chrome sector, which depends on Transnet’s rail and port network to move record chrome ore export volumes; rail and port logistics constraints have been repeatedly cited by industry bodies as a structural drag on ferroalloys competitiveness, forcing greater reliance on costlier road transport. Transnet’s results did not disclose chrome ore or ferroalloys-specific volumes within the rail or port figures, leaving the extent of any improvement in chrome-specific logistics performance unquantified.
Source: news.metal.com
Compiled from international media by the SCI.AI editorial team.
