WBHO’s performance in 1H26 was mixed, hit by weak performances from roadworks and civil engineering, which experienced tough market conditions in SA. The company was able to maintain a healthy order book, but prospects for the remainder of FY26 are uncertain.
The UK recorded a good result despite setbacks at Byrne Group, but the regional outlook remains weak, as the market is subdued despite improved macroeconomic factors, and its order book is low.
While the group order book is healthy and large projects were secured following the period-end, the amount of work secured for 2H26 is low, and any new work secured from this point is unlikely to make a significant contribution to FY26. Furthermore, the SA building market remains weak, and management is struggling to find new mining infrastructure work. WBHO is also experiencing delays in awards from Sanral and other government agencies, which could adversely affect the order book in FY27.
Despite the negative outlook, we expect the second half of the year to show an improvement. Additionally, the strong order book and pipeline of renewable energy and roadwork bode well for FY27, in our view. WBHO is expected to benefit from border post, Sanral and renewable energy awards, which could make the next financial year more stable despite the current geopolitical instability.