South African tech company that doubled investors’ money in a year hits a speed bump

Altron experienced a strong start to its 2026 financial year, with the first half seeing a significant rise in profits and earnings.

Altron is one of South Africa’s largest technology companies and was one of the JSE’s best-performing stocks in 2024, with 117% share price growth.

Founded in 1965, Altron provides technology solutions to half of the top 100 companies listed on the JSE.

Its clients operate in various sectors, including connectivity, healthcare, financial technology, and South Africa’s vital business infrastructure.

On Monday, 3 November 2025, Altron released its results for the six months ended 31 August 2025, marking the first half of its 2026 financial year.

On a group level, the company recorded a 4% decline in revenue to R4.91 billion and a net profit after tax of R258 million, an 8% decrease compared to the first half of its 2025 financial year.

However, when excluding the group’s discontinued operations, which included the sale of Altron Nexus on 1 August 2025, these metrics improve significantly.

Altron’s continuing operations saw its revenue decline by 1% to R4.83 billion, while its net profit after tax increased by 11% to R330 million.

The company’s earnings per share from continuing operations also increased by 12% to 84 cents, while headline earnings per share grew by 22% to 96 cents.

Altron attributed these strong results to a standout performance from its Platforms segment, which drove the increase in earnings.

This segment saw its revenue grow by 12% to R2.18 billion, while its operating profit increased by 32% to R547 million.

The company explained that the decline in its group revenue was due to a tough trading environment in IT services, which it managed to offset by focusing on higher margin annuity revenue streams.

The strong performance from Altron’s Platforms segment offset the revenue and profitability declines seen in its IT Services and Distribution segments, which both experienced a 49% drop in operating profit.

“I am pleased with this period’s strong financial performance in a challenging economic environment,” CEO Werner Kapp said. 

“I am particularly encouraged by the growth and returns in our Platforms segment, which we continue to invest behind in line with our strategy.”

“Our strong financial position and cash flow generation have allowed us to increase our interim dividend.”

The company declared an interim dividend of 48 cents per share, an increase of 20% compared to the first half of its 2025 financial year.