South Africa’s state-owned power utility Eskom says it expects to match last year’s full-year profit after delivering a strong performance in the first half of its 2026 financial year. The utility posted an after-tax profit of R24.3 billion for the six months to September 2025, driven by improved plant performance and firmer financial fundamentals, according to Reuters. The company noted that the earnings trajectory places it on track to sustain the profitability milestone achieved last year, marking a notable continuation of its turnaround.
Eskom’s bottom line for the period rose 37 percent from the previous year, supported by revenue growth to R191.3 billion following a 12.7 percent tariff increase. Net finance costs fell by about 14 percent as the utility reduced its interest burden and improved its debt position, Reuters also reported. Business Day added that the first half was accompanied by significantly fewer power cuts, reinforcing investor confidence in Eskom’s operational stability.
Management and analysts say the results underline that the utility’s recovery is no longer episodic but structural. Improved performance at key coal-fired power stations, sustained cost control measures and disciplined execution of its turnaround plan have contributed to the gains, as highlighted by Green Building Africa.
Despite the positive momentum, Eskom cautioned that financial pressures remain, particularly escalating municipal arrears and the need for long-term investment to secure energy stability. Even so, the latest performance signals a more resilient Eskom, strengthening the outlook for South Africa’s broader energy sector, according to Business Day.
