South Africa’s Exxaro reports $461 million earnings in 2025 as coal drives growth

South African miner Exxaro Resources Limited reported stronger earnings for 2025, showing how steady operations and firm coal prices helped support the business even as costs edged higher. The company said headline earnings—the main profit measure used by South African firms—rose to R7.73 billion ($461.3 million), up from R7.3 billion ($436.2 million) a year earlier, offering a clear sign of stability in a year marked by economic pressure.

The increase in profit was matched by gains at the per-share level. Headline earnings per share climbed 8 percent to R32.47 ($1.93), compared with R30.16 ($1.8). The result reflects tighter cost control, improved marketing, and consistent output across key operations. In a statement, the company pointed to disciplined execution across its mines and energy assets, even as the broader market remained uncertain.

Coal output, sales and exports grow

Revenue also moved higher, rising 3 percent to R41.77 billion ($2.5 billion) from R40.73 billion ($2.43 billion). Coal remained the backbone of the business, as revenue from the segment increased to R40.11 billion ($2.4 billion), up from R39.11 billion ($2.33 billion). Production held firm at 39.9 million tonnes, a 1 percent increase, while sales rose to 39.6 million tonnes. Export volumes reached 7.1 million tonnes, up 2 percent, with the group achieving 96 percent of the average API4 benchmark price—a sign of steady pricing discipline in global markets.

Costs, however, continued to rise modestly. Coal cash costs increased 2 percent to R653 ($39) per tonne. Power generation slipped slightly, with output falling 3 percent to 703 GWh, even as plant availability improved to 98 percent. The energy unit remained a steady contributor, supported by a wind asset EBITDA margin of 79 percent, showing the strength of its renewable portfolio alongside coal operations.

Safety remained a standout area. The company recorded zero work-related fatalities in 2025, extending its fatality-free period to 40 consecutive months. Its lost time injury frequency rate improved to 0.04 per 200,000 hours worked from 0.06, reflecting fewer workplace incidents. Key sites, including the Grootegeluk and Belfast operations, reported a full year without lost-time injuries, reinforcing the group’s focus on safer operations.

Exxaro assets hit $6.16 billion, equity climbs, dividends rise 15%

Exxaro’s balance sheet also strengthened. Total assets rose to R103.2 billion ($6.16 billion) from R94.72 billion ($5.65 billion), while shareholders’ equity increased to R71.25 billion ($4.25 billion) from R68.55 billion ($4.1 billion). Retained earnings rose to R54.2 billion ($3.23 billion) from R51.9 billion ($3.1 billion), reflecting profitability and disciplined capital management.

Shareholders are set to benefit from the performance. The board declared a final dividend of R10 ($0.6) per share, up 15 percent, bringing the total payout for the year to R6.3 billion ($376.4 million). This includes an interim dividend of R2.9 billion ($173.2 million) paid in October 2025 and a final dividend of about R3.4 billion ($203.1 million). 

The company is also taking steps to widen its earnings base. On Feb. 27, 2026, Exxaro completed the acquisition of manganese assets from Ntsimbintle Holdings and OMH, following its earlier announcement in May 2025. The deal includes full ownership of Ntsimbintle Mining, a stake in Jupiter Mines, and interests in the Tshipi Borwa mine, giving it exposure to a major operation producing about 3.5 million tonnes annually and supporting a more diversified portfolio across coal, energy and metals.