Julius Berger Nigeria Plc’s Diversification phase recorded an working lack of N25.77 billion in the 9 months ended September 30, 2026, nearly 4 occasions the N6.49 billion loss reported a yr earlier.
This is based on the corporate’s unaudited monetary statements filed on the Nigerian Exchange.
The loss cancelled out almost half of the N53.14 billion working revenue earned by the group’s three core segments: civil works, constructing works and companies.
Diversification losses outpace income development
Julius Berger describes the Diversification phase as comprising its cashew processing enterprise in Epe, Lagos, and the expansion of its building enterprise into new regional markets.
The firm doesn’t report the 2 actions individually, limiting visibility into their particular person contributions to income and losses.
- Revenue greater than tripled to N35.12 billion from N10.38 billion, representing development of 238.4%, whereas the phase’s share of group income elevated to five.3% from 1.9%.
- Operating losses widened by 297.1% to N25.77 billion from N6.49 billion, as prices grew sooner than income.
- The working margin deteriorated to -73.4% from -62.5%, which means the phase misplaced about N73 for each N100 of income, in contrast with roughly N63 a yr earlier.
- All N35.12 billion of the phase’s reported income got here from authorities purchasers, in contrast with N10.38 billion in the corresponding interval of 2025.
The government-client classification suggests regional building contracts contributed to the expansion, though it doesn’t set up the income break up between building and cashew processing.
Julius Berger beforehand introduced a contract to rehabilitate roads and crossings in Cotonou, Republic of Benin, describing the undertaking as its first step exterior Nigeria. The submitting didn’t clarify the scale of the phase’s loss.
Core earnings face diversification drag
Julius Berger’s three core segments generated mixed working revenue of N53.14 billion, up 73% from N30.71 billion in the corresponding interval of 2025. After the Diversification loss, group working revenue stood at N27.37 billion, representing development of solely 13%.
- Civil works working revenue rose 50.8% to N24.67 billion, whilst income slipped 1.1% to N346.09 billion.
- Building works working revenue elevated 140.2% to N14.62 billion, supported by income development of 25.8% to N162.82 billion.
- Services working revenue rose 67.6% to N13.85 billion, whereas income elevated 121.8% to N113.13 billion.
- Income tax expense climbed 121.1% to N25.73 billion, equal to 71.6% of the group’s N35.92 billion pre-tax revenue.
The mixture of diversification losses and a better tax cost weighed on the group’s backside line regardless of stronger working earnings throughout its core companies. Profit after tax fell 44.2% to N10.19 billion, whereas earnings per share declined to N6.24 from N11.28.
The firm has not confirmed whether or not losses inside the Diversification phase contributed to the excessive efficient tax fee.
Diversification order e-book limits visibility
The Diversification phase’s remaining efficiency obligations stood at N48.3 billion as at September 30, 2026. This represents contracted income nonetheless to be recognised, with almost half anticipated in the ultimate three months of the yr.
- The firm expects to recognise N23.3 billion of the phase’s remaining contracted income in the fourth quarter of 2026, with N25 billion scheduled for 2027 onwards.
- The group’s whole order e-book stood at N1.38 trillion, led by civil works at N603 billion and constructing works at N562.3 billion.
- Diversification accounted for about 3.5% of the whole order e-book, leaving its future income dependent in half on extra contract awards.
- Julius Berger’s shares final traded at N310.80 as at October 30, 2026, up about 103% because the begin of the yr.
