Masimba Holdings’ 2025 performance was supported in part by growing exposure to private sector contracts, including mining-related infrastructure work, which helped lift revenue and strengthen cash flows. However, rising costs continued to weigh on profitability, resulting in a decline in margins, Mining Zimbabwe can report.
By Ryan Chigoche
Revenue rose 9.6% to ZWG1.6 billion for the year ended 31 December 2025, driven by increased activity in private sector projects. Within this mix, mining-linked infrastructure work played a supporting role, alongside housing and commercial developments, as the contractor deepened its exposure to clients outside the public sector.
Operating cash flows increased 68% to ZWG129 million, while working capital improved to ZWG500 million, reflecting stronger collections from private clients. The shift toward privately funded projects, including mining-related contracts, helped ease long-standing payment delays typically associated with government infrastructure work.
Private sector contracts now account for 56% of total revenue, up from 46% a year earlier, underscoring the group’s gradual pivot toward mining and other non-state-driven projects. While Masimba does not disclose mining revenue separately, industry exposure through civil works and infrastructure delivery continues to grow.
The group’s order book stood at US$278 million, covering mining, housing, and broader infrastructure projects. Management cautioned, however, that execution timelines remain sensitive to domestic liquidity constraints, particularly in public sector-linked work.
Despite stronger cash generation, profitability weakened. EBITDFVA declined 10% to ZWG319 million, with margins narrowing from 24% to 20% as cost inflation outpaced revenue growth.
Mining and heavy civil engineering projects are typically cost-sensitive, and the results suggest that while activity levels have improved, particularly from private sector and mining-related contracts, rising input costs are limiting the translation of higher volumes into stronger earnings.
Profit before tax rose marginally to ZWG220 million, supported by a ZWG39 million fair value gain on investment properties. Excluding this one-off gain, underlying profit before tax fell 17% to ZWG181 million, reflecting weaker core performance.
Capital expenditure increased to ZWG109 million, directed toward an asphalt plant and quarry operations aimed at strengthening the group’s capacity to service infrastructure demand, including mining-related supply chains such as roadworks and materials.
The expansion was partly funded through borrowings, with total debt rising 30% to ZWG107 million, increasing balance sheet pressure in a lower-margin environment.
Despite the earnings pressure, the board declared a 30% increase in dividends to 0.61 US cents per share, supported by stronger cash flows.
