“Metair is pleased with the progress over the past 12 months. The Group's restructured debt package has established a sustainable repayment profile going forward.  Margins have improved through our restructuring and optimisation efforts, and, together with a recovery in volumes, have increased profitability. Hesto’s enhanced performance is now well-entrenched, and ongoing initiatives to stabilise AutoZone are bearing fruit.” - Paul O’Flaherty, Metair CEO

Metair, a leading supplier of automotive components across Africa, revealed strong operational progress across its businesses in a trading statement today, with pleasing revenue and EBIT growth in the underlying businesses.

EBIT benefited from the wide-ranging recovery initiatives, stable volumes and the inclusion of Hesto from 1 April 2025. This was partially offset by the inclusion of expected losses from AutoZone, reflecting its recovery phase as it emerges from business rescue.

Metair said that while the South African new-vehicle market delivered a solid performance in 2025, this was heavily weighted towards imported vehicles, which increased by a significant 30.4%. However, despite a recovery in a major customer’s volumes following the engine certification issue in 2024, South African original equipment manufacturer (“OEM”) passenger and LCV production increased by only 1.48% to 602 302 in 2025.

Against this background, the Group continued to focus on areas within its control: entrenching continuous operational improvement and efficient project management, as well as flexing production and costs to increase resilience, enhance margins, and improve returns on invested capital. Specific focus areas during the year included manufacturing excellence in supplying to OEM customers and bedding down AutoZone to facilitate planned growth in the aftermarket segment. To increase agility, the Group also restructured, right-sized, and closed certain operations, allowing Metair to adapt dynamically to market shifts and volume fluctuations. These efforts resulted in a notable improvement in overall EBIT margin to between 6.0% and 6.2%, relative to 4.8% in 2024.

At earnings level, these positives were countered by the recognition of a significant once-off net capital loss of approximately R300 million in Hesto, triggered by its first time consolidation, and the provision of the Rombat fine by Rombat of R413 million. Metair announced in December 2025 that the European Commission imposed a fine of EUR20.2 million (R413 million) on Rombat.  The Group is considering all its legal options on the matter. 

The Group said that the diversification strategy of growing the Aftermarket Sector is ongoing. Bedding down AutoZone as the business emerges from business rescue is tracking approximately 6-months behind plan, but Metair remains confident in the turnaround. Pleasingly, the continued improvement initiatives at Hesto Harnesses (“Hesto”), the Group’s major wiring harness supplier, resulted in higher revenue and improved operating profit.

The Group established the Metair Aftermarket Parts and Retail division at the end of FY2025. The division consists of five distinct and separate verticals, AutoZone, MOVE, ATE, First Battery Retail, and QSV. The divisionalisation approach enhances strategic clarity, operational efficiency, and financial transparency, enabling the Group to better serve distinct markets and customer segments, whilst maintaining brand and channel independence.

Metair implemented a capital restructuring plan in the first half of 2025, providing the Group with a more sustainable debt structure and repayment terms more appropriately aligned.  Management continues to closely monitor debt levels and liquidity, with reducing debt in the medium term remaining a key priority.

O’Flaherty concluded: “Metair is pleased with the progress achieved during the period in its core operational results. Management continues to monitor the debt levels and liquidity closely, to ensure that all covenants are met over the remaining periods of the debt package.  Margins have improved through our restructuring and optimisation efforts, which, together with a recovery in volumes, have increased profitability. Hesto’s enhanced performance is now well-entrenched, and initiatives to stabilise AutoZone are bearing fruit.”