The announcement of Eskom’s R24.3 billion profit after tax for the six months ended 30 September 2025 marks a significant milestone for South Africa’s state-owned power utility, signaling sustained progress in its multi-year recovery plan. This figure represents a 37% increase from the R17.8 billion recorded in the same period last year, driven by higher revenue from a 12.74% tariff hike effective from April 2025 and robust cost controls, including R6.3 billion in primary energy savings. Profit before tax rose 41% to R32.5 billion, while EBITDA grew 11% to R68.5 billion, underscoring improved operational efficiency.
Key Financial Highlights
| Metric | H1 FY2026 (Ended Sep 2025) | H1 FY2025 (Ended Sep 2024) | Change (%) |
|---|---|---|---|
| Profit After Tax | R24.3 billion | R17.8 billion | +37% |
| Profit Before Tax | R32.5 billion | R23.0 billion | +41% |
| EBITDA | R68.5 billion | R61.7 billion | +11% |
| Revenue | R191.3 billion | R183.7 billion | +4% |
| Sales Volumes | 92.8 TWh | 95.7 TWh | -3% |
These results come amid challenges like rising municipal debt, which climbed to R105 billion despite 71 municipalities participating in a government debt-relief program—over 85% of which are failing to pay current accounts on time. Eskom plans to reinvest the profits into a R320 billion five-year capital program focused on plant stabilization, transmission expansion for renewables integration, and grid resilience.
Operational Improvements Fueling Stability
Eskom’s enhanced performance is closely tied to its generation recovery efforts, culminating in near-elimination of loadshedding:
- Electricity Supply Availability: Achieved 96% for the full 2024/25 financial year, rising to 98% year-to-date in FY2026.
- Loadshedding Impact: Limited to just 26 hours across four evening peak days, resulting in an estimated 36 GWh of lost energy— a sharp decline from prior periods’ 7.9 TWh (8% of sales) and R17.5 billion in revenue loss.
- No Interruptions Since May: Zero loadshedding implemented after 15 May 2025, a streak exceeding six months and a testament to better fleet management.
- Capacity Additions and Returns:
- Kusile Unit 6 (799 MW base-load capacity) entered commercial operation, boosting reliable output.
- Medupi Unit 4 (720 MW nominal base-load capacity) returned to service following major repairs.
These advancements stem from the utility’s turnaround strategy, emphasizing decisive leadership, reduced unplanned outages, and lower diesel usage (down R11.9 billion year-over-year in the prior period). The board’s term ending alongside these results highlights a pivotal transition, with expectations of continued profitability—forecast to match or exceed last year’s R16 billion full-year profit.
Broader Implications
For South African households and businesses, this stability reduces economic drag from blackouts, which have historically shaved up to 4% off GDP annually. However, ongoing tariff pressures (with 9% hikes approved for 2026–2027 and R54 billion in historical cost recovery) and municipal non-compliance pose risks to affordability and cash flow. Eskom’s push into renewables and distribution agency agreements—allowing temporary takeover of delinquent municipal networks—could further solidify gains, but success hinges on tariff sustainability and debt resolution.
Overall, these interim results affirm that Eskom’s recovery is no flash in the pan, positioning the utility for long-term viability while easing the energy crisis that has plagued the nation for over a decade. If trends hold, FY2026 could see even stronger outcomes, provided external factors like municipal payments improve.
