Altron has issued a voluntary operational update, alerting shareholders that it expects significantly improved revenue for the full 2026 financial year (FY2026).
According to the statement, continuing operations delivered low double-digit EBITDA growth year-to-date, and operating profit growth greater than 20%.
Excluding the change in Netstar’s depreciation policy operating profit increased in the low-to-mid-teens.
The group’s attributes its performance to disciplined focus on execution of its strategy across all businesses and reflects the benefit of a robust and diversified portfolio, despite varying operating conditions.
Deliberate focus on deployment of capital into higher-margin, annuity-revenue growth opportunities continued in H2 FY2026, with further improvement in operating leverage.
Year-to-date, Altron’s Platforms segment has contributed approximately 45% to revenue, and approximately 90% to both EBITDA and operating profit.
Robust double-digit revenue growth in the Platforms segment was offset by a decrease in revenue in the IT Services segment. The constrained operating environment for IT Services persisted in H2 FY2026 and is in line with market trends observed in South Africa and globally.
Capital structure and cash generation
The group aims to maintain a healthy liquidity position, with a continued emphasis on cash conversion and disciplined capital allocation.
Operating cash flows continued to strengthen in H2 FY2026, relative to H1 FY2026. This performance is underpinned by the continued shift in revenue mix toward annuity-based income, which exceeded 65% of total revenue year-to-date for FY2026, and is a structural driver of higher cash flow generation.
Segmental performance
In the Platforms segment:
- Netstar delivered a strong performance underpinned by solid growth in South Africa and early signs of progress in Australia.
- The South African business continues to perform well, with sustained low double-digit growth in revenue and strengthening operational execution, delivering high-teen EBITDA growth year-to-date.
- Australia’s recovery has been slower than initially anticipated due to once-off items affecting operating profit; however, key performance indicators including subscriber growth, cash flow and sales activity have shown improvement.
- Netstar has delivered mid-to-high teen EBITDA growth year-to-date. Excluding the change in Netstar’s depreciation policy(4), operating profit increased in the high teens, in line with EBITDA growth.
- Altron FinTech delivered high teen revenue growth driven by continued success in onboarding SME customers onto its payments and collections platform and higher volumes in payments and collections. Annuity revenue year-to-date exceeded 80%. With the focus on higher-margin products and services, and as the business scales, operating margins continued to improve, delivering EBITDA and operating profit growth, both in the high-twenties percent range.
- Altron HealthTech’s year-to-date EBITDA growth, in the low-20s percent range, and operating profit growth in the high teens, are tracking in line with H1 FY2026 performance.
In the IT Services segment:
- Altron Digital Business continues to be impacted by the challenging IT services environment. In response, as highlighted in H1 FY2026, Altron implemented a comprehensive profit-improvement strategy and finalised its restructuring in December 2025. Two consecutive months of operating profitability in December 2025 and January 2026 reflect a marked improvement in the IT Services segment’s performance and provide clear evidence that the cost-reduction measures are gaining traction. The business is now well positioned to benefit from any upturn in IT services spend.
- Altron Security continued to see changes in sales mix, delivering double-digit revenue growth, with operating profit growth broadly in line with H1 FY2026 performance.
- Altron Document Solutions profit improvement strategy continues to deliver positive results. The focus on higher-margin services led to more than 30% year-to-date EBITDA and operating profit improvement.