R580 million Eskom settlement helps South African construction giant triple earnings

Stefanutti Stocks expects its earnings per share from continuing operations to grow by as much as 210% for the 2026 financial year.

The construction giant reached a settlement with Eskom over the Kusile Power Project in November 2025, for a total of R580 million, which resulted in a net profit after tax of R492 million.

On Friday, 15 May, Stefanutti released a trading statement for the year ended 28 February 2026, which showed that the construction giant expects bumper earnings.

For its continuing operations, Stefanutti expects an increase of between 190% and 210% in earnings per share (EPS), and between 195% and 215% for headline earnings per share (HEPS).

Regarding its total operations, Stefanutti expects its EPS to jump by between 360% and 380%, with HEPS projected to rise by between 220% and 240%.

The difference between the earnings from continuing and total operators reflects Stefanutti’s disposal of SS-Construcoes and Stefanutti Stocks Construction in December 2025.

The company’s results were also aided by a notable R580 million settlement from Eskom over the Kusile Power Project, as part of a decades-long dispute was finally resolved in November 2025.

The dispute surrounded a 2008 tender for the Kusile Power Plant, the fourth-largest coal-fired power station and the most expensive of its kind in the world.

Construction of the project started in 2008, but was plagued by multiple delays and ultimately went considerably over budget, with all of the station’s six units only operational in 2025.

Stefanutti’s dispute with Eskom stemmed from a 2008 tender, a joint venture with private construction companies, including Stefanutti, working on the utility’s Kusile Power Station. The original contract was for six years.

However, consistent project delays due to site access and other construction problems caused the project to progress much more slowly than expected.

This led Stefanutti to claim that Eskom interfered with its work in a way that was in breach of its original contract, which saw the construction giant incur significant prolongation costs.

Stefanutti and Eskom have both submitted claims, with the utility seeking damages for late completion.

On 24 November 2025, Stefanutti and Eskom signed a full and final settlement agreement for an amount of R580 million.

In its latest trading statement, Stefanutti said this settlement is recognised net of related costs and taxation, resulting in a net profit after tax of R492 million.

Stefanutti will release its full results for the 2026 financial year on 26 May 2026.