Denel tells Parliament about net profits, rising revenues, but financial constraints

State-owned defence industrial group Denel told Parliament’s Standing Committee on Appropriations (SCOA) on Wednesday that its revenues during the 2026/26 financial year (FY) had increased to R1.4-billion, from the R1.2-billion accrued in FY 2024/25. The group did so in a presentation to the Committee. These improved revenues came in the main from maintenance contracts at its Aeronautics, Landward and Pretoria Metal Pressings (better known as PMP) businesses. However, Denel’s net profit in FY 2025/26, at R156-million, was down on the R193-million achieved in 2024/25. The 2024/25 figure was the first net profit recorded by the group in about a decade. (In FY 2023/24, it had had a net loss of R532-million.) Its total borrowing in FY 2025/26 was R58-million, a significant decrease on the R183-million borrowed in FY 2024/25.

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