Wrap Text
Operational update and trading statement for the 12 months ended 31 December 2025
METAIR INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1948/031013/06
ISIN: ZAE000090692
JSE and A2X share code: MTA
("Metair" or the "Company" or the "Group")
OPERATIONAL UPDATE AND TRADING STATEMENT FOR THE 12 MONTHS ENDED 31 DECEMBER 2025
OPERATIONAL UPDATE
Introduction
As reported by the National Association of Automobile Manufacturers of South Africa (NAAMSA), South
Africa's new-vehicle sales market delivered a solid performance during the 12-month period ended
31 December 2025 ("FY2025" or the "Period"), recovering to levels exceeding those recorded in the
pre-pandemic period in 2019. While new vehicle sales increased by a credible 15.7% to 597 014
(FY2024: 515 976) during the Period, this was heavily weighted towards imported vehicles, which
increased by a significant 30.4% to 408 890 (FY2024: 313 594).
However, despite a recovery in a major customer's volumes following the engine certification issue in
2024, South African original equipment manufacturer ("OEM") passenger and LCV production
increased by only 1.48% to 602 302 in 2025. South African OEMs have also faced strong competition
in export markets alongside the competition in the local market, resulting in exports increasing by only
4.4% during FY2025. In addition, the local aftermarket experienced challenging market conditions.
Against this background, the Group continued to focus on areas within its control, entrenching
continuous operational improvement and efficient project management, as well as flexing production
and costs to increase resilience, enhancing margins, and improving returns on invested capital. Specific
focus areas during the Period included manufacturing excellence in supplying to OEM customers and
bedding down AutoZone Holdings Proprietary Limited ("AutoZone") to facilitate planned growth in the
aftermarket segment.
The Group established the Metair Aftermarket Parts and Retail division at the end of FY2025. The
division consists of five distinct and separate verticals, AutoZone, MOVE, ATE, First Battery Retail, and
QSV. The divisionalisation approach enhances strategic clarity, operational efficiency, and financial
transparency, enabling the Group to better serve distinct markets and customer segments, whilst
maintaining brand and channel independence.
This diversification strategy of growing the Aftermarket Sector is ongoing. Bedding down AutoZone as
the business emerges from business rescue is tracking approximately six-months behind plan, but
Metair remains confident in the turnaround.
To increase agility, Metair has also restructured, right-sized, and closed certain operations, allowing the
Group to adapt dynamically to market shifts and volume fluctuations. In this regard, the following
operations closed during the Period:
(i) the Industrial division of First Battery, where importing and selling inverters and standby
battery systems proved uneconomical; and
(ii) Dynamics Batteries in the United Kingdom, which was closed as part of our strategy to
focus on the African market.
Pleasingly, the continued improvement initiatives at Hesto Harnesses ("Hesto"), the Group's largest
subsidiary, resulted in higher revenue and improved operating profit.
Update regarding the European Commission's Statement of Objections
Metair shareholders ("Shareholders") are referred to previous announcements regarding the European
Commission's ("Commission") investigations into battery manufacturers in Europe. As disclosed in the
announcement published on SENS on 15 December 2025, the Commission issued a ruling imposing a
total fine of EURO 20.2 million (R413 million, based on the prevailing exchange rate) on Rombat SA
("Rombat Fine"). Whilst the Group is considering all of its legal options regarding the matter, the
Rombat Fine will be fully provided for by Rombat for FY2025. Metair refutes the decision by the
Commission regarding the legal presumption that Metair exercised decisive influence over Rombat in
this matter.
Results from continuing operations (unless otherwise stated)*
Group revenue is expected to increase by between 53% and 58% year-on-year
(FY2024: R11 376 million), driven by the inclusion of Hesto as a subsidiary with effect from 1 April 2025
and AutoZone for the full Period. Earnings before interest and taxation ("EBIT")**, is expected to range
between R1 070 million (+96%) and R1 110 million (+103%) (FY2024: R546 million) at an EBIT margin
of between 6.0% and 6.2% (FY2024: 4.8%). EBIT benefited from the wide-ranging recovery initiatives,
stronger volumes and the inclusion of Hesto from 1 April 2025. This was offset by the inclusion of losses
from AutoZone, reflecting its recovery phase as it emerges from business rescue.
Segmental update
As announced in the interim results for the six months ended 30 June 2025 ("2025 Interim Results"),
the Group has restructured its operations into two core segments. This was to realign the business
operations' strategic shift and reset as defined in 2024. The two core segments are:
• the OEM Direct Component Manufacturing segment ("OEM Segment"): supplying components
directly to OEMs; and
• the Aftermarket Parts and Retail segment ("AFM Segment"): primarily focused on serving the
independent aftermarket and retail distribution channels.
OEM Segment
OEM revenue for FY2025 is expected to increase by between 63% and 68% (FY2024: R7 081 million),
with an EBIT margin expected of between 7.5% and 8.5% (FY2024: 5.3%). This growth is primarily
driven by the inclusion of Hesto as a subsidiary from 1 April 2025 and stable volumes in the rest of the
OEM businesses. The EBIT margin increase was further supported by cost-reduction and operational-
improvement initiatives implemented during the FY2024 and continuing into FY2025.
If Hesto had been included for the full twelve months in both comparative periods, OEM revenue would
have increased by between 4% and 6%, with EBIT margins improving to between 7.5% and 8.0%
(FY2024: 5.2%).
AFM Segment
Revenue from the AFM Segment is expected to increase by between 40% and 44%
(FY2024: R4 296 million), driven largely by the inclusion of AutoZone.
The AFM Segment EBIT margin is expected to decline to between 3.9% and 4.1% (FY2024: 6.2%) due
to the FY2025 EBIT loss recorded by AutoZone, which is in a stabilisation phase, and an expected
decrease in First Battery South Africa EBIT margins to more normalised levels in FY2025 as noted in
the 2025 Interim Results.
At First Battery South Africa, sales volumes declined slightly in FY2025, with c. 1 515 million batteries
sold compared to 1 536 million in FY2024. At Rombat S.A in Romania, volumes sold improved by 3%
to 2 885 million batteries (FY2024: 2 812 million), supported by an improvement in both their local
aftermarket and OEM sales.
Liquidity and debt
As previously reported, on 10 March 2025, the board of directors of Metair ("Board") and Metair's
lenders approved a capital restructuring plan ("Capital Restructure") designed to provide Metair with
a more sustainable debt structure and repayment terms more appropriately aligned. The Capital
Restructure allows for a repayment profile that matches expected earnings growth and cash flows over
five years.
The SA Obligor R3.3 billion refinance, comprising the South African subsidiaries excluding Hesto, was
concluded in April 2025, and the Hesto Obligor R1.4 billion refinance was concluded in June 2025. In
addition, the SA Obligor has implemented a cash sweep programme, which has yielded positive results
and increased control of Group cash.
While Metair continues to be impacted negatively by high interest paid on its outstanding debt, the
restructured debt package has provided the Group with a more sustainable debt structure and
appropriately aligned repayment terms. We are pleased to report that all the covenants of the SA
Obligor, including the earnings before interest, tax, depreciation and amortisation ("EBITDA")
requirements, were met during the year. In addition, the covenants of the Hesto Obligor were also met.
Management continues to monitor the debt levels and liquidity closely to ensure that all covenants are
met over the remaining periods of the debt package.
CONCLUSION
Metair is pleased with the progress achieved during the Period in its core operational results. Margins
have improved through our restructuring and optimisation efforts, which, together with a recovery in
volumes, have increased profitability. Hesto's enhanced performance is now well-entrenched, and
ongoing initiatives to stabilise AutoZone are bearing fruit.
TRADING STATEMENT
In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, companies are required to
publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists
that the financial results for the period to be reported upon next, will differ by at least 20% from the
financial results for the previous corresponding period.
The accounting for Hesto as a subsidiary with effect from 1 April 2025 is expected to result in a
significant once-off net capital loss of approximately R300 million, primarily due to the recognition of
losses from Hesto not accounted for previously. This item is eliminated in the calculation of headline
earnings per share ("HEPS") but is included in the calculation of earnings per share ("EPS"). In addition,
Rombat is expected to provide R413 million for the Rombat Fine which is expected to negatively affect
the overall results.
Metair is in the process of finalising its financial results for FY2025, and Shareholders are accordingly
advised as follows:
Earnings guidance from continuing operations
In respect of the Group's earnings from continuing operations, the Company expects to report:
Excluding the Rombat Fine: (Metair believes that these earnings numbers represent the most
appropriate reflection of the underlying performance of the business during the period)
• HEPS is expected to be between 185 cents and 195 cents (FY2024: 105 cents*), being an
increase of between 76% and 86%; and
• EPS is expected to be between 28 cents and 35 cents (FY2024: 155 cents*), being a decrease
of between 82% and 77%, due primarily to the once-off net capital loss relating to the
accounting for Hesto as a subsidiary with effect from 1 April 2025
Including the Rombat Fine:
• a headline loss per share of between 18 cents and 24 cents (FY2024: HEPS of 105 cents*);
and
• a loss per share of between 178 cents and 185 cents (FY2024: EPS of 155 cents*), due
primarily to the once-off net capital loss relating to the accounting for Hesto as a subsidiary with
effect from 1 April 2025 together with the provision for the Rombat Fine.
Total earnings guidance including discontinued operations
In respect of the Group's total earnings, the Company expects to report:
• a headline loss per share of between 63 cents and 70 cents (FY2024: headline loss per share
of 203 cents), being an improvement of between 69% and 66%; and
• a loss per share of between 228 cents and 235 cents (FY2024: loss per share of 2 146 cents)
being an improvement of approximately 89%.
* As was reported in the 2024 Integrated Annual Report, the Mutlu transaction in Türkiye was
successfully finalised in FY2024 which significantly derisked the balance sheet.
In addition, 2024 reported revenue and EBIT have been re-presented for the two divisions (Dynamic
Batteries and First Battery Industrial division) which have been classified as discontinued operations in
the current year in accordance with IFRS 5.
The previously presented results for FY2024 have been re-presented to facilitate comparability.
** EBIT - calculated as operating profit before interest and taxation but excluding the impact of capital
items (the Rombat Fine, impairment of non-financial assets, and profit / loss on disposals and
acquisitions).
The pro forma financial information included in this announcement has been prepared in accordance
with the Group's accounting policies, is provided for illustrative purposes only and, because of its nature,
may not fairly represent the financial performance of the Group.
The financial information contained in this announcement is the responsibility of the Board and has not
been audited, reviewed, or reported on by the Group's external auditors.
The annual financial results are expected to be published on or about Wednesday, 11 March 2026.
9 February 2026
Johannesburg
Sponsor
One Capital
Date: 09-02-2026 08:00:00
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