JSE-listed mining and chemicals multinational AECI posted revenue of R32.1-billion for the year ended December 31, 2025, which was down 4% on the prior year; however, it achieved record earnings before interest, taxes, depreciation and amortisation (Ebitda) of R3.4-billion and improved its Ebitda margin to 11% from 9% in the prior year.

The company has concluded most of the disposals of noncore assets, and realised R2.2-billion from these disposals during the year under review. The discontinued operations also recorded a loss for the year of R15-million, down from a R560-million loss in the prior year.

AECI also reduced its net debt to R465-million at the end of 2025, down from R3.74-billion in the preceding year.

Profits from continuing operations decreased slightly to R1.53-billion, down from R1.544-billion in 2024.

However, basic earnings a share were 343c for the year, compared with a loss a share of 268c in 2024. Headline earnings a share were 1 098c, up from 716c in 2024.

AECI declared a final dividend for the year of 128c, bringing the total dividend for 2025 to 228c, up 4% on that of 2024.

The targeted disposals and rightsizing to optimise the group's portfolio have enhanced earnings quality and strengthened the balance sheet, it said in its results presentation on February 25.

The next phase for AECI will prioritise retaining and growing its market share in core regions, reinvesting in high-quality assets, further strengthening its balance sheet resilience and continuing to focus on improved and sustainable quality of earnings.

“The group's portfolio optimisation programme is substantially completed, following the successful disposals,” said AECI interim group CEO Dean Murray.

Substantial progress was made during the year and a considerable uplift in operational and financial performance was achieved.

During the year, functional and operational excellence was pivotal in establishing a solid foundation from which the group could pursue its ambition of achieving efficiencies, which accelerated the development of the processes, structures and systems required for effective execution, he said.

“With this solid foundation, these initiatives will continue under the stewardship of the operating segments where alignment and accountability are most effective, although oversight of progress tracking will remain within the corporate function.

“Internationalisation efforts will continue with a continued disciplined approach that is aligned to our future growth priorities.”

AECI said it was well positioned for long-term growth and would pursue opportunities in strategic regions, supported by a focused, disciplined capital-allocation framework.

However, performance was impacted on by operational challenges at its flagship Modderfontein facility, as well as the impact of inclement weather on operating activity in certain regions during the year under review.

The Modderfontein operational challenges included power interruptions and disruptions in supply of ammonia and lead azide. Good progress was made in the second half of the year to address these challenges.

Management was addressing these areas to protect value, strengthen operational reliability and keep the group on track to deliver long-term value, which was reflected in the improved performance in the second half of the year under review.

In an interview with Engineering News, Murray said Southern Africa and Africa were core regions for the company, and that the Democratic Republic of Congo (DRC) in particular was an important market, which presented further growth opportunities.

“Our Modderfontein site is the cornerstone for supplying bulk emulsions to this region, hence the need to make improvements to the plant. We have a programme in place to spend around R800-million over three years at this site, which is key to our operations in this region,” he said.

Further, AECI Mining executive VP Stuart Miller said operations at the Modderfontein facility were stabilised, and improved in the second half of the year, with resilience having been improved and feedstock-mitigation plans in place.

“For 2026 and beyond, our strategic focus areas as a group are centred on products and technologies, which is the lens through which we are shaping the business to compete and grow.”

AECI's first priority under these plans is to optimise Modderfontein, having completed its stabilisation.

“This is not a turnaround or step-change in capital deployment in this facility, but is focused on reliability, use and capital discipline, and the optimisation is focused on achieving technology leadership in production processes,” said Miller.

“We are investing in long-term competitiveness and are phasing-out low-margin legacy production lines and reallocating the capital to higher margin, growth-oriented technologies. These will strengthen our product offering and Modderfontein is also our anchor for deploying leading technologies in Africa,” he said.

A second part of its strategy for the current year is to embed operational excellence enabled by technologies, including digital tools and process automation, that will help to improve supply reliability, safety and cost-discipline, among others.

Additionally, Miller said AECI's growth would be selective and return-driven. It would deploy capital in markets that showed the strongest potential returns, including the DRC, Australia and Indonesia.

“Here, our products and technologies have a clear competitive advantage and will support margin-led growth,” he said.

Further, the company continues to leverage long-standing partnerships with customers, and often partner with them on advanced technologies and products to deploy solutions that create value.

AECI also evaluates new jurisdictions alongside partners, which helps it to expand its markets without materially increasing risk.

“AECI enters 2026 with record Ebitda, a stronger cash flow, a higher return on invested capital-ratio and a portfolio that is increasingly anchored by leading technologies and products.

“We are embedding these improvements into the business to translate them into sustainable and margin-led growth that delivers sustainable and more predictable earnings,” said Miller.

Meanwhile, Murray said innovation remained a key advantage for the company, particularly in its mining division, and it was working on many new products.

“A lot of our research and development and technology work is application-driven and intended to increase our product range and offer solutions to our customers.

“For example, we produce flocculants for phosphate rock mining applications, but we have other technologies that can benefit other minerals processing, including traditional metals or mines working with various different minerals, as well as rare earths and energy transition minerals,” said Murray.

The value the company provided was by increasing the efficiency on mines in terms of use of extraction chemicals, which was where its technical expertise was crucial, and AECI continued to invest in its technical skills, he added.