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Barloworld Limited
(Incorporated in the Republic of South Africa)
(Registration number 1918/000095/06)
(Income Tax Registration number 9000/051/71/5)
(Share code: BAW)
(A2X share code: BAW)
(JSE ISIN: ZAE000026639)
(Share code: BAWP)
(JSE ISIN: ZAE000026647)
(Bond issuer code: BIBAW)
("Barloworld" or the "Group")
VOLUNTARY TRADING UPDATE FOR THE ELEVEN MONTHS ENDED 31 AUGUST 2025
Overview
Group revenue declined by 10% from R37.4 billion to R33.6 billion for the eleven months ended
31 August 2025 ("the current period") when compared to the 11 months ended 31 August 2024
("the prior period"). EBITDA declined by 9% from R4.2 billion in the prior period to R3.8 billion.
The EBITDA margin increased to 11.2% (11.1% in the prior period) and the operating profit margin
declined to 7.5% (8.0% in the prior period).
Operational review for the eleven months ended 31 August 2025
Industrial Equipment and Services
Equipment southern Africa
Equipment southern Africa generated R21.8 billion in revenue, 3.9% lower than the prior period
at R22.7 billion. Excluding the currency impact of the stronger Rand against the Dollar, revenue
declined by 1,5% relative to the prior period. Revenue was driven by strong rental growth and
some gains in machine sales, while aftersales revenue declined compared to the previous year.
The sales mix had a dilutive impact on profit margins. EBITDA ended at R2.3 billion (prior period:
R2.7 billion). EBITDA margin declined to 10.7% (prior period: 11.8%). Bartrac's performance has
improved from the first half of the year and positively contributed R116 million (prior period:
R185 million) to bottom line performance. Equipment southern Africa's order book increased from
R2.4 billion in the prior year to R3.2 billion.
Barloworld Mongolia
Mongolia's strong performance in the prior period has tapered off following delivery of a large
order of new machines. The decline in prime product revenue was partially offset by aftermarket
growth. This resulted in revenue of US$216.0 million, representing a 8.5% decrease from
US$236.2 million in the prior period. Barloworld Mongolia generated EBITDA of US$45.8 million
when compared to the prior period of US$44.3 million, EBITDA margin improvement from 18.8%
in the previous period to 21.2%. The prior period included the $10 million earnout triggered by the
Barloworld Mongolia acquisition performance conditions. The firm orderbook declined from
US$76.8 million to US$14.2 million.
Vostochnaya Technica ("VT")
VT revenue declined by 54.0% to US$95.2 million from US$207.0 million in the prior period.
Consequently, VT's EBITDA declined by 22.5% from US$13.1 million in the prior period to
$10.1 million. VT generated an improved EBITDA margin of 10.7% compared to 6.3% in the prior
period. The business continues to trade above break-even and remains self-sufficient in terms of
its funding requirements.
Consumer Industries
Ingrain
Ingrain held up well in a difficult domestic market. The business generated revenue of R5.8 billion
which is 2.1% lower than the R6 billion in the prior period as a result of lower volumes, which were
partially offset by higher selling prices; increasing competition from imports and subdued demand
in certain segments. Manufacturing costs increased on the back of cyclically higher maize prices,
and increasing energy and chemicals resulted in EBITDA down 9.9% to R635 million compared
to R704 million in the prior period.
Funding and liquidity
The Group maintained adequate headroom for the current period on both offshore and onshore
operations. During the current period, the Group reported net debt of R5.4 billion which is R1.9
billion higher than the prior period of R3.5 billion. The Group conducted a review of its current,
committed, and uncommitted facilities, as well as the Domestic Medium Term Note programme,
and is satisfied with the available headroom across these facilities. The Group remains well within
its financial covenants.
Conclusion
The Board will release a trading statement once a reasonable degree of certainty exists
concerning the Group's financial results for the twelve months ending 30 September 2025.
Barloworld expects to release its annual financial results for the twelve months ending 30
September 2025 on or about Monday, 17 November 2025.
Shareholders are advised that the information in this voluntary trading update has not been
audited, reviewed, or reported on by the Group's external auditors. This update does not
constitute a forecast.
Sandton
25 September 2025
Equity and Debt Sponsor:
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Enquiries:
Kgaugelo Legoabe-Kgomari
Tel: +27 82 619 4710 | E-mail: bawir@barloworld.com
Date: 25-09-2025 08:30:00
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