Johannesburg: Eskom has reported a second year of profitability, marking progress in its strategy to restore both operational and financial sustainability. On Monday morning, the power utility announced its annual results for the 2026 Financial Year, which ended on March 31, 2026, showing a group profit after tax increase of R30.3 billion, up from a restated R14.0 billion in 2025. The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin also increased to 30.63% from the previous year's 28.75%.
According to South African Government News Agency, Eskom's chairperson, Mteto Nyati, highlighted the utility's dual mandate to run a financially sound business while supporting South Africa's growth and connectivity. Nyati attributed the profitability to operational recovery and cost discipline, enabling reinvestment in various areas such as Eskom Green and grid expansion.
The power utility's Group Chief Financial Officer, Calib Cassim, emphasized the significance of Eskom's financial turnaround, noting improvements in liquidity and credit ratings. Cassim mentioned the utility's first credit-rating upgrade in over a decade, which enhances Eskom's ability to access lower borrowing costs for capital expenditures. He acknowledged the role of government debt relief in freeing up operational cash for reinvestment rather than debt servicing.
Eskom's Group Chief Executive, Dan Marokane, assured the public of ongoing efforts to transform the power utility into a financially sustainable and competitive entity. Marokane highlighted progress in audit recovery, internal controls, and efficiencies, enabling Eskom to address electricity affordability and invest in infrastructure and decarbonisation technologies.
Marokane also noted the economic impact of Eskom's turnaround, referencing a reduction in load shedding costs and minimal economic disruption due to only four days of load shedding in FY2026. He stressed the importance of Eskom's financial sustainability in facilitating government reform policy and integrating renewable energy into the grid.
