Eskom’s financial recovery is gaining momentum, with the power utility reporting a second consecutive annual profit and a significant improvement in its financial performance for the 2026 financial year.
Profit after tax doubled from R14 billion to R30 billion for the year ended 31 March 2026, reflecting what the utility describes as the impact of improved operational performance, tighter cost discipline and its broader turnaround strategy.
The stronger financial position gives Eskom greater capacity to reinvest in critical areas, including grid expansion, electricity distribution, coal fleet reliability and its Eskom Green initiatives. These investments will be important as South Africa seeks to strengthen energy security while accommodating increasing levels of renewable energy on the national grid.
Eskom Board Chairperson Mteto Nyati said the latest results demonstrate that the utility’s improved performance has been achieved through operational recovery and financial discipline.
Group CEO Dan Marokane said a financially sustainable Eskom would also support wider economic growth by providing the energy security needed to attract new market participants and accelerate electricity-sector reforms.
However, Eskom’s improved profitability comes against a backdrop of continued concern over electricity affordability. The utility has indicated that it intends to pursue structural reforms to ease pressure on consumers, rather than relying primarily on higher tariffs to resolve its financial challenges.
