South African state-owned company makes R1 billion profit

Airports Company South Africa (ACSA) achieved a record profit of R1.1 billion in its 2024/25 financial year, more than double what it made the previous year.

ACSA is a majority state-owned airport management company that operates nine of South Africa’s airports, including OR Tambo International and Cape Town International.

On Monday, 25 August, ACSA released a statement outlining its financial performance for the year ended 31 March 2025.

This revealed that ACSA had made a record net profit of R1.1 billion, more than double the R472 million achieved in 2023/24.

“This milestone signals more than just financial resilience; it is a powerful testament to black excellence and the organisation’s stature as one of South Africa’s best-performing state-owned entities,” the company said. 

“Beyond the numbers, this achievement reaffirms ACSA’s role as custodian of critical national infrastructure and as a key driver of South Africa’s economic growth, connectivity, and global competitiveness.”

ACSA’s revenue grew by 13% to R7.9 billion, underpinned by strong performance across both aeronautical and non-aeronautical streams, with the latter now contributing 49% of total revenue.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) rose to R2.9 billion, reflecting a healthy margin of 37%.

ACSA’s net profit climbed to R1.1 billion, which the company attributed to disciplined cost management and strengthened internal controls.

Capital expenditure rose to R861 million from R568 million in 2023/24 as the company focused on renewing and expanding airport infrastructure.

The company’s balance sheet also remains strong, with total assets of R32 billion, a net debt-to-capitalisation ratio of 8%, and liquidity of R3.4 billion at year-end.

Based on these strong results, ACSA’s board approved the payment of R198 million in accrued preference share dividends and declared R113 million in ordinary share dividends for 2024/25.

This marks a sharp improvement from 2023/24, when total dividends amounted to R815 million, comprising R768 million for preference shares and R47 million for ordinary shares. 

“The year-on-year growth in ordinary dividends reflects not only ACSA’s stronger balance sheet but also the company’s sustained recovery and renewed capacity to deliver value to shareholders,” it said.

Ups and downs

ACSA CEO Mpumi Mpofu said the company’s 2024/25 performance consisted of strong financial delivery on one hand, and operational headwinds on the other. 

“It has demanded from us commercial discipline, executional rigour, and also humility and renewed accountability,” she said.

“While these challenges were significant, they taught us valuable lessons to focus on preventative maintenance and avoid service disruptions for our stakeholders, the airlines and passengers.”

“This we will achieve through continuous improvement, targeted infrastructure investment and enhanced operational readiness and customer experience.”

Mpofu added that ACSA’s financial results are not only a testament to the resilience of ACSA but also a reflection of South Africa’s broader aviation recovery. 

“With a clear strategy to ‘Innovate, Grow and Sustain,’ we are well positioned to support national priorities, foster economic growth in trade and tourism through a modernised aviation sector,” she said.

Looking ahead, ACSA is looking to position itself as a future-ready airport operator through a R21.7 billion capital investment pipeline over the next five years.

This includes flagship projects at O.R. Tambo, Cape Town International and other key regional airports. 

This investment is complemented by partnerships with the CSIR and The Innovation Hub to drive aviation research, predictive maintenance, and biometric-enabled passenger journeys.

At the same time, ACSA plans to strengthen supply chain governance and transformation to ensure that small, medium, and micro enterprises, particularly those owned by women, youth, and people with disabilities, benefit from its procurement footprint.

“ACSA will continue to build on this momentum, deploying advanced systems, embracing renewable energy solutions, and aligning with South Africa’s just energy transition,” the company said. 

“In doing so, we aim not only to strengthen our resilience and governance, but also to position ACSA as a trusted, sustainable gateway for trade, tourism, and global connectivity – driving growth that endures well beyond the numbers.”