Altron has reported strong operational momentum across its platform businesses, with headline earnings per share and earnings per share from continuing operations expected to exceed the prior year by more than 30%. The shares climbed.

In a voluntary operational update ahead of its year-end on 28 February, the JSE-listed technology group said continuing operations delivered low double-digit Ebitda growth and operating profit growth of more than 20% year-to-date. Excluding a change in Netstar’s depreciation policy, operating profit increased in the low-to-mid teens.

The update underscores the growing dominance of Altron’s platforms segment – which includes Netstar, Altron FinTech and Altron HealthTech – over its traditional IT services businesses. Year-to-date, platforms contributed approximately 45% of revenue but roughly 90% of both operating profit and earnings before interest, tax, depreciation and amortisation (Ebitda), a striking illustration of the group’s strategic pivot towards higher-margin, annuity-revenue businesses.

Annuity revenue now exceeds 65% of total group revenue, which Altron said is a structural driver of stronger cash-flow generation.

Netstar, the vehicle tracking and telematics subsidiary, delivered mid-to-high teen Ebitda growth, underpinned by sustained low double-digit revenue growth in South Africa. However, the recovery of its Australian operation has been slower than initially anticipated, with one-off items affecting operating profit. The company said key performance indicators including subscriber growth, cash flow and sales activity have shown improvement in Australia.

Altron FinTech was a standout performer, delivering high-teen revenue growth driven by the onboarding of SME customers onto its payments and collections platform. With annuity revenue exceeding 80%, and a focus on higher-margin products, the business delivered Ebitda and operating profit growth both in the high-20s percentage range.

IT services subdued

Altron HealthTech’s Ebitda growth, in the low-20s percentage range, tracked in line with its first-half performance.

The IT services segment painted a more subdued picture. Altron Digital Business continues to be affected by a challenging environment for IT services spending, both locally and globally. However, a restructuring completed in December 2025 appears to be bearing fruit, with the business recording two consecutive months of operating profitability in December and January. Altron said it is now well positioned to benefit from any upturn in IT services demand.

Altron Document Solutions was a bright spot within IT services, with a profit improvement strategy delivering more than 30% year-to-date Ebitda and operating profit growth. Altron Security delivered double-digit revenue growth, with operating profit broadly in line with first-half performance.

Read: Altron jumps after company flags strong earnings growth

The company said the 2026 financial year marks the completion of its three-year “accelerated growth” strategic phase, which focused on strengthening margins, streamlining the portfolio and embedding operational discipline. Altron said it is now positioned to enter a new phase of “transformative growth”, with further details to be shared at a capital markets day planned for June.

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