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AECI Ltd ( (GB:87FZ) ) has shared an announcement.
AECI expects a strong rebound in 2025 earnings, guiding that basic and headline earnings per share will rise by more than 20% year on year, with HEPS up 43–58% and EPS from continuing operations up 26–40%. The improvement is driven by higher underlying profitability, particularly at AECI Mining, where EBITDA is set to climb more than 15% despite softer revenues as disciplined pricing and margin management offset volume declines and operational disruptions.
The group’s Chemicals division is set to post modest revenue growth but lower EBITDA due to bad debts, partially recovered in the second half, while Water and Plant Health units show improved performance and specialty and industrial chemicals lag. AECI is also reshaping its portfolio through disposals in its Managed Businesses segment, using about R2.3 billion of proceeds to cut debt, with net debt expected to fall to roughly R460 million and gearing to about 5%, significantly strengthening the balance sheet and the quality of earnings.
The recognition of about R820 million in impairments tied to disposals and Schirm Germany will weigh on reported EPS, though lower net finance costs, down around 34% on reduced leverage, support the bottom line. Overall, the update signals a leaner, more resilient AECI with improved operational efficiency and a markedly stronger capital structure, positioning the group more competitively in global mining and chemical markets.
More about AECI Ltd
AECI is a diversified mining and chemicals solutions and services group, employing over 5,500 people across more than 100 sites in over 20 countries. Founded to serve South Africa’s gold and diamond mining sector and listed on the JSE, it now offers mine-to-mineral, water treatment, specialty chemicals, crop protection and property-related services through four operating segments.
Technical Sentiment Signal: Buy
Current Market Cap: £424.2M
Find detailed analytics on 87FZ stock on TipRanks’ Stock Analysis page.