• Masimba’s profit for the period fell 6% to US$2.74 million in HY26 as funding cycles slowed activity on selected government projects
• Revenue declined 13% to US$25.39 million
• The contractor entered the second half with a secured order book of about US$320 million, alongside US$59.34 million in contracts in progress and receivables

Harare - Masimba Holdings Limited, the Zimbabwean construction and engineering group operating across roads, mining, buildings, water, energy and other infrastructure projects, saw profit for the period decline 5.8% to US$2.74 million in the six months to June 2026 from US$2.91 million a year earlier, as lower activity on selected public sector projects reduced revenue and slowed the conversion of secured work into current period earnings.

Revenue fell 13% to US$25.39 million from US$29.18 million, with management attributing the decline to funding cycles that affected implementation on certain public projects.

Masimba entered the second half with a secured order book of approximately US$320 million, giving the group a substantial pipeline of contracted work. Revenue generated during the first half represented only a portion of that pipeline, placing greater weight on the movement of projects from award to funding, mobilisation, execution, billing and collection.

Funding has been a recurring constraint in Masimba’s public sector business. In 2025, delayed government payments led the company to manage its exposure to public works and increase its focus on private sector clients, with the company suspending some public works to manage credit risk. The current results show that project funding continues to determine the pace at which public infrastructure contracts translate into activity and revenue.

Revenue pressure reached the operating result during the first half. Profit before depreciation and fair value adjustments declined 6% to US$6.34 million from US$6.75 million, while depreciation increased to US$2.44 million from US$2.08 million. Operating profit consequently fell 16% to US$3.91 million from US$4.66 million, while net interest paid increased to US$228,241 from US$154,410.

Capital investment continued while project activity slowed. Masimba spent US$2.15 million on property, plant and equipment during the six months, with investment directed towards equipment and operational capacity, while property, plant and equipment reached US$21.50 million at June.

Work already undertaken or awaiting settlement absorbed a substantial amount of capital. Contracts in progress and accounts receivable increased to US$59.34 million at June from US$54.95 million at December, with US$58.91 million comprising contract receivables and work in progress. The allowance for credit losses also increased to US$464,177 from US$378,297.

Masimba reported net working capital of US$22.8 million at June compared with US$19.2 million at December. Management has placed receivables conversion and disciplined cash collection among its priorities and has been engaging key clients on payment plans where settlement has been delayed.

Contract receivables and work in progress accounted for almost the entire US$59.34 million balance, tying a large portion of the current asset base directly to project execution and client settlement. Cash generation consequently depends on projects moving through certification and billing, followed by payment from clients.

Private sector activity has become an increasingly important component of the order pipeline. Management says the private sector contribution is growing, with newly awarded contracts adding to the secured workload, while mining remains an important source of activity.

Masimba’s earlier shift towards private clients provides context for that expansion. Public infrastructure contracts have historically provided significant volumes of work, while payment delays have created pressure on receivables and cash flow. Private sector contracts give the group another source of project activity and allow capital and equipment to be deployed across a broader client base.

Project execution remained active during the first half despite the lower revenue. Masimba completed several mining sector projects, opened Chevron Bridge to traffic and completed 16 kilometres of the Kezi to Maphisa Road, demonstrating that the revenue decline occurred alongside ongoing project delivery rather than a complete contraction in construction activity.

Government funded infrastructure remains part of the second half pipeline. Funding frameworks have been developed for rehabilitation of the Harare to Beitbridge and Bulawayo to Victoria Falls roads, while newly awarded private sector contracts provide additional work for the group's operating platform.

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