Results for the six months ended 30 June 2026

Salient features:

• Strategic reset is substantially complete and the balance sheet has stabilised
• Good operational progress made in Original Equipment Manufacturer (OEM) and Aftermarket divisions
• Seamless key OEM customer model changeover, with new model experiencing strong demand
• AutoZone growing ahead of the market and profitability returning, albeit six months later than anticipated

Financial Results

• Group revenue increased by 1% to R8.5 billion
• Earnings before interest and taxation (EBIT) increased by 1% to R444 million (EBIT margin remained consistent at 5.2%)
• Total headline earnings per share (HEPS) increased by 11% to 72 cents (H1 2025: 65 cents)
• HEPS (continuing operations) increased by 4% to 71 cents (H1 2025: 68 cents**)
• Total EPS of 72 cents* (H1 2025: loss per share of 93 cents)
• EPS (continuing operations) of 70 cents* (H1 2025: loss per share of 90 cents**)

*The accounting for Hesto Harnesses (Hesto) Proprietary Limited as a subsidiary resulted in the recognition of a significant once-off net capital loss of R306 million in the first half of 2025 financial year (H1 2025), primarily arising from the recognition of previously unaccounted losses from Hesto as an associate, partially offset by a bargain purchase gain. This item has been included in the calculation of earnings per share but excluded from headline earnings per share. Hesto was consolidated for 3 months from 1 April in H1 2025, compared to a full 6 months in respect of the period ended 30 June 2026 (H1 2026).

** H1 2025 Comparative information has been re-presented to reflect the classification of Dynamic Battery and First Battery Industrial, as discontinued operations in accordance with International Financial Reporting Standard (IFRS) 5 – Discontinued Operations in the second half of 2025. 

Johannesburg. 26 August 2026: Metair, a leading supplier of automotive components across Africa, revealed resilient performance across its businesses with stable revenue and EBIT growth in the underlying businesses despite subdued production growth at OEMs. EBIT benefited from successful cost-saving initiatives and spending discipline. The EBIT margin was stable at 5.2%. EBITDA increased by 8% to R760 million, while EBITDA margin improved to 8.9%.


Metair-related manufacturing business was impacted by volumes from one local OEM customer that were 25%, or 15 366 units lower compared to the prior corresponding period, partially offset by higher volumes from other customers.

Total EPS (including discontinued operations) reflected a significant turnaround from a loss of 93 cents in H1 2025, to a profit of 72 cents in H1 2026. EPS from continuing operations was equally strong, turning around from a loss of 90 cents** in H1 2025, to a profit of 70 cents in H1 2026. The Group grew HEPS from continuing operations by 4% to 71 cents and total HEPS by 11% to 72 cents.


Chief Executive Officer, Paul O’ Flaherty said: “Metair is a materially different business from what it was two and a half years ago. Substantial work has been undertaken to improve its flexibility and adaptability to navigate adverse market conditions by closing loss-making businesses, restructuring profitable businesses and capitalising on opportunities as they arise. A new refinancing package has also created the runway to execute on the recovery and growth plan, although the debt remains elevated. A new team is in place, a new business model has been implemented, and all major restructuring is substantially complete, subject to market conditions. The company’s risk profile has been materially enhanced, and there are no further unusual items in its results. We are also pleased to report that a model change at a major OEM has been successful and seamless.”

Metair has transitioned into a stable operating phase, as evidenced by the solid set of financial results for the half-year ended June 2026. The focus is now on generating earnings before income, taxation,

depreciation and amortisation (EBITDA) and free cash flow to service the debt.


The South African automotive industry experienced sharply divergent market conditions during the period. While new vehicle sales grew strongly by 12.9% to 315 303 units, this growth was disproportionately driven by imports from Chinese and Indian automotive brands, which continue to put pressure on the locally manufactured vehicle market. Local OEMs also had to contend with lower vehicle exports, which declined by 7.8% year-on-year for the first six months of the year, to 181 731 units. Production of passenger and light commercial vehicles by South African OEMs remained fairly flat period-on-period, increasing by 1% to 285 917 units. While conditions in the aftermarket remained challenging, signs of improvement have recently emerged.


Revenue from the OEM segment grew by 4.4% to R5 732 million. Overall, the OEM segment reported EBIT of R433 million, an increase of 12% on the prior period, at an EBIT margin of 7.6% vs 7.0% in the prior period due mainly to the ongoing efficiency improvements and cost-saving initiatives.


Revenue from the Aftermarket parts and retail (AFM) segment was 5% lower at R2 813 million, in a very competitive market, especially in batteries. AFM Africa EBIT remained stable at R54 million at an EBIT margin of 2.9%.  While progress at AutoZone remains approximately six months behind expectations, the new management team is making good progress in returning it to profitability.


Improved operational performance and working capital management increased cash from R143 million at 30 June 2025 to R620 million. This improvement reduced group net debt to R4.3 billion from R5.1 billion in the comparative period. The Group concluded a refinance on its SA Obligor debt, extending the term for five years, thereby further derisking the balance sheet. Metair is also currently finalising a refinance at Hesto.


O’Flaherty concluded: “Metair is pleased with its operational and financial performance for the interim period. The company remains focused on improving profitability, reducing debt and driving growth. Prospects in the local OEM market are stabilising, and one of Metair’s major customers is seeing strong demand for its new model. Metair will continue to diversify by growing the Aftermarket segment, which is structurally attractive because of its exposure to a growing and ageing vehicle parc, and lower reliance on new vehicle production. AutoZone is already showing strong signs of improvement, with trading sales per day growing well ahead of a market that is also improving. We have also appointed a team to expand our African AFM business outside South Africa, where we see significant potential.”

For further information, please contact: 

Phillemon Mosala – phillemon@aprio.co.za


About Metair

Metair is a leading manufacturer, distributor, and retailer in the automotive sector. The Group operates in South Africa and Sub-Saharan Africa, with a focus on delivering innovative and sustainable automotive components and Aftermarket solutions. The Group comprises diverse businesses supplying a broad range of automotive parts across the vehicle spectrum and down the value chain. It operates within two primary segments: Automotive Component Manufacturing (67% of revenue); and Aftermarket Parts and Retail (33% of revenue) for the automotive sector.