SHORT FORM ANNOUNCEMENT: REVIEWED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2025 AND UPDATED BUSINESS OUTLOOK

Rhea-AI Summary

Sasol (JSE:SSL) reported H1 FY26 results for the six months ended 31 December 2025: turnover R122.4 billion, Adjusted EBITDA R21.0 billion (down 12%), EBIT R4.6 billion (down 52%), and HEPS R9.27 (down 34%).

Capital expenditure fell to R8.5 billion (down 43%), free cash flow improved to R0.8 billion (more than 100% improvement) and net debt was R63.3 billion (US$3.8bn). Secunda production rose ~10%. FY26 hedging complete; FY27 hedging underway. No interim dividend declared due to net debt above the US$3.0bn policy threshold.

Positive

• Free cash flow improved to R0.8 billion (>100% change)
• Capital expenditure reduced by 43% to R8.5 billion
• Secunda Operations production volumes +10%
• Liquidity maintained at above US$4 billion

Negative

• EBIT declined 52% to R4.6 billion
• Headline EPS down 34% to R9.27
• Adjusted EBITDA down 12% to R21.0 billion
• Net debt at US$3.8bn, above dividend trigger

Key Figures

Turnover: R122,387 million Adjusted EBITDA: R21,006 million EBIT: R4,619 million +5 more

8 metrics

Turnover R122,387 million Half year ended 31 Dec 2025 vs R122,102 million prior period (flat)

Adjusted EBITDA R21,006 million Half year ended 31 Dec 2025, 12% lower than prior period

EBIT R4,619 million Half year ended 31 Dec 2025, 52% lower than prior period

Basic EPS R0,38 per share Half year ended 31 Dec 2025, down 95% from R7,22

HEPS R9,27 per share Half year ended 31 Dec 2025, down 34% from R14,13

Capital expenditure R8,495 million Half year ended 31 Dec 2025, 43% lower than prior period

Free cash flow R794 million Half year ended 31 Dec 2025 vs R-1,296 million prior period (>100% improvement)

Net debt (excl. leases) R63,269 million As at 31 Dec 2025 vs R64,964 million at 30 Jun 2025

Market Reality Check

Price: $8.74 Vol: Volume 2,387,892 is 1% ab...

normal vol

$8.74 Last Close

Volume Volume 2,387,892 is 1% above the 20-day average of 2,353,031, indicating typical pre-results trading activity. normal

Technical Price at $8.74 trades above the 200-day MA $5.96 and sits close to the 52-week high $8.97, despite weaker H1 FY26 metrics.

Peers on Argus

SSL slipped 1.24% while key Specialty Chemicals peers showed mixed, low-magnitud...

SSL slipped 1.24% while key Specialty Chemicals peers showed mixed, low-magnitude moves (e.g., CBT +1.12%, BCPC -1.78%, SXT -0.21%). This points to a stock-specific reaction to its H1 FY26 results rather than a coordinated sector move.

Previous Earnings Reports

4 past events · Latest: Aug 25 (Positive)

Same Type Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Aug 25	FY2025 results	Positive	+11.0%	FY2025 showed higher HEPS and free cash flow despite prior headwinds.
Feb 24	H1 2024 results	Negative	+3.5%	Interim 2024 results showed revenue, EBITDA and EPS declines with impairments.
Aug 20	FY2024 results	Negative	-4.4%	FY2024 featured large impairments and loss before interest and tax.
Feb 26	H1 2023 results	Neutral	-4.0%	Reviewed interim financial results for six months ended 31 Dec 2023.

Pattern Detected

Earnings releases have often produced sizable moves, with positive reactions even to mixed results and occasional selloffs on weaker prints.

Recent Company History

Over the past two years, Sasol’s earnings events have reflected volatile fundamentals and market responses. FY2024 results on Aug 20, 2024 highlighted large impairments and generated a -4.37% move. By Feb 24, 2025, interim 2024 results remained challenging, yet the stock rose 3.45%, showing some divergence. FY2025 results on Aug 25, 2025 showed sharply improved HEPS and free cash flow, with a strong +10.97% reaction. Another interim earnings release on Feb 26, 2024 also drew a negative response. Today’s H1 FY26 release fits into this pattern of earnings-driven repricing and ongoing balance sheet focus.

Historical Comparison

+1.5% avg move · In the last four earnings releases, SSL’s average move was 1.51%. Today’s -1.24% reaction to H1 FY26...

earnings

+1.5%

Average Historical Move earnings

In the last four earnings releases, SSL’s average move was 1.51%. Today’s -1.24% reaction to H1 FY26 results sits within this historical volatility range.

Earnings history shows a shift from heavy FY2024 impairments and losses to improved FY2025 HEPS and free cash flow, followed by H1 FY26 pressure from lower commodity prices and fresh impairments while debt and cash metrics continue to be managed.

Market Pulse Summary

This announcement combines weaker profitability with improved cash discipline. For H1 FY26, Adjusted...

Analysis

This announcement combines weaker profitability with improved cash discipline. For H1 FY26, Adjusted EBITDA fell to R21,006 million and basic EPS dropped to R0,38, while free cash flow turned positive at R794 million and capex declined to R8,495 million. Net debt excluding leases edged down to R63,269 million. Investors may focus on future earnings releases, progress on cost and capex optimisation, and delivery against updated International Chemicals EBITDA and group capex guidance.

Key Terms

adjusted ebitda, free cash flow, net debt, net asset value

4 terms

adjusted ebitda financial

"Adjusted EBITDA of R21,0 billion, 12% lower than the prior period"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

free cash flow financial

"Free cash flow improvement to R0,8 billion, more than 100% change"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

net debt financial

"Net debt (excluding leases) of R63,3 billion (US$3,8 billion)"

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

net asset value financial

"--- Table Start --- Net asset value | Half year 31 Dec 2025"

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

AI-generated analysis. Not financial advice.

JOHANNESBURG, Feb. 23, 2026 /PRNewswire/ -- Sasol has released its operating and financial results for the six months ended 31 December 2025 (H1 FY26).

Highlights:

• Turnover of R122,4 billion remained flat compared to prior period, supported by 3% increase in sales volumes and despite the softer macro environment
• Secunda Operations' (SO) production volumes 10% higher
• Lower cash fixed cost compared to the prior period, reflecting disciplined cost management
• Adjusted EBITDA of R21,0 billion, 12% lower than the prior period
• Earnings before interest and tax (EBIT) of R4,6 billion, 52% lower than the prior period
• Headline earnings per share (HEPS) of R9,27 per share, 34% lower than the prior period
• Capital expenditure of R8,5 billion, 43% lower than the prior period
• Free cash flow improvement to R0,8 billion, more than 100% change from the prior period
• Net debt (excluding leases) of R63,3 billion (US$3,8 billion), representing a net debt to Adjusted EBITDA ratio of 1,6 times
• FY26 hedging programme concluded, with FY27 hedging programme underway

Statement by Simon Baloyi, Chief Executive Officer of Sasol:
"We are showing consistent progress in the implementation of our strategic initiatives as set out in our Capital Markets Day plan. This is strengthening our foundation business, helping us to mitigate ongoing global market volatility and macroeconomic headwinds, building resilience for the future.

Safety remains our foremost value, and we endeavour to send everyone home safely each day. Unfortunately, we did not, as we lost one of our team members in September 2025. While this loss weighs heavily on us, we are seeing an encouraging improvement in key leading safety indicators. Our commitment to safety remains unwavering as we continue to embed learnings and reinforce a strong safety culture across the business.

In the Southern Africa business, we achieved an important milestone in December 2025 when the destoning plant at Sasol Mining reached beneficial operation in line with plan and improving coal quality. This, together with higher gasifier availability and no phase shutdown, resulted in a 10% uplift in Secunda Operations' (SO) production volumes. Disciplined cost and capital management further supported a lower cash break-even oil price.

The International Chemicals reset strategy is progressing, although market conditions were weaker than anticipated with lower US ethylene margins and muted market demand. We have made good progress on lowering our cost base, which supported a 10% increase in Adjusted EBITDA in US$ terms compared to the prior period.

The Group generated positive free cash flow in the first half of the financial year for the first time in four years, despite the challenging macro environment. This was supported by the higher sales volumes, lower cash fixed costs and lower capital expenditure. Importantly, this has been achieved without compromising asset integrity and safety.

The balance sheet remains a focus area with robust liquidity in place while we continue to hedge proactively to manage downside risk.

We continue to advance our Grow and Transform strategy. We have secured an additional 300 megawatt (MW) of renewable energy, increasing total secured capacity in South Africa to more than 1 200 MW, supporting both emission reductions and cost savings.

Our priorities are clear: safe, reliable operations; disciplined cost and capital management; proactive risk management; and improved cash generation. Consistent execution in these areas is strengthening resilience and positioning Sasol to deliver sustainable shareholder value."

Financial performance

Sasol continued to make progress on factors within its control despite a challenging macro environment. Lower cost and capital expenditure supported positive free cash flow generation in the period.

Adjusted EBITDA of R21,0 billion was 12% lower than the prior period, primarily due to a 17% decline in the average Rand per barrel Brent crude oil price and lower average US dollar per ton chemicals basket price. This was partially offset by improved refining margins, 3% higher sales volumes driven by stronger production performance and lower cash fixed costs.

Earnings before interest and tax (EBIT) of R4,6 billion was 52% lower than the prior period of R9,5 billion and impacted by non-cash remeasurement items of R7,9 billion. This related mainly to impairments of R7,8 billion (before tax) compared to R5,7 billion in the prior period, and include the impairment on the Secunda liquid fuels refinery cash generating unit (CGU) and our Mozambican Production Sharing Agreement (PSA) gas development.

As a result of the above, basic earnings per share (EPS) decreased by 95% to R0,38 per share and HEPS decreased by 34% to R9,27 per share compared to the prior period.

Cash generated by operating activities of R11,6 billion declined 34%, mainly reflecting the lower earnings detailed above. Capital expenditure of R8,5 billion was 43% lower than the prior period. This was mainly due to no Secunda shutdown, lower Production Sharing Agreement (PSA) project expenditure in Mozambique and lower capital on environmental compliance programmes as these near completion. Free cash flow of R0,8 billion increased by more than 100%, supported by the lower capital expenditure.

Liquidity remains robust at above US$4 billion and we actively manage our debt maturity profile, maintaining resilience in a volatile market environment.

Total debt decreased to R93,5 billion (US$5,6 billion) compared to R103,3 billion (US$5,8 billion) at 30 June 2025. Sasol deposited R8,7 billion (US$500 million) on the revolving credit facility and repaid R812 million on the DMTN. A floating rate bond of R5,3 billion was issued in the period to 31 December 2025. In exchange, US$300 million was received. The issuance supports our efforts to diversify the funding base, reduce US$ dollar debt exposure and financing costs. In addition, it provides the flexibility to address upcoming bond maturities using available liquidity if required.

Net debt (excluding leases) ended at R63,3 billion (US$3,8 billion), compared to R65,0 billion (US$3,7 billion) at 30 June 2025. We continue to prioritise cash generation through our management actions to meet our full-year net debt target of below US$3,7 billion.

We continue to execute our hedging strategy, with the FY26 programme complete and the FY27 hedging programme underway. During the period, foreign exchange translation losses were largely offset by gains on derivative instruments. Given the prevailing market conditions, a broader range of hedging instruments has been utilised to maintain downside protection.

Key metrics

	Half year 31 Dec 2025	Half year 31 Dec 2024	Change %
Turnover (R million)	122 387	122 102	-
Adjusted EBITDA1 (R million)	21 006	23 949	(12)
EBIT (R million)	4 619	9 533	(52)
Basic earnings per share (Rand)	0,38	7,22	(95)
Headline earnings per share (Rand)	9,27	14,13	(34)
Capital expenditure (R million)	8 495	15 007	(43)
Free cash flow2 (R million)	794	(1 296)	>100
Net debt (excluding leases)3 (R million)	63 269	64 964	3
1  Adjusted EBITDA is calculated by adjusting operating profit for depreciation, amortisation, share-based payments, remeasurement items, change in discount rates of our rehabilitation provisions, all unrealised translation gains and losses, and all unrealised gains and losses on our derivatives and hedging activities.
2  Free cash flow is defined as cash available from operating activities less first order capital and related capital accruals.
3  Comparative number is as at 30 June 2025.

Net asset value	Half year 31 Dec 2025	Full year 30 Jun 2025	Change %
Total assets (R million)	339 707	359 555	(6)
Total liabilities (R million)	183 010	201 944	9
Total equity (R million)	156 697	157 611	(1)

Turnover			EBIT/(LBIT)1
Half year 31 Dec 2025	Half year 31 Dec 2024		Half year 31 Dec 2025	Half year 31 Dec 2024
R million	R million		R million	R million
		Southern Africa Energy and Chemicals
14 744	15 347	Mining	2 138	2 291
6 342	6 591	Gas	(811)	3 925
52 046	48 845	Fuels	3 082	(998)
28 917	30 748	Chemicals Africa	(293)	3 469
		International Chemicals
19 010	19 724	America	550	657
20 932	19 921	Eurasia	255	(136)
-	-	Business Support	(302)	325
141 991	141 176	Group performance	4 619	9 533
(19 604)	(19 074)	Intersegmental turnover
122 387	122 102	External turnover
1  Loss before interest and tax

Dividend

The Company's dividend policy is based on 30% of free cash flow generated, provided that net debt (excluding leases) is sustainably below US$3 billion. The net debt at 31 December 2025 of US$3,8 billion exceeds the net debt trigger, therefore no interim dividend was declared by the Sasol Limited board of directors (the Board).

Updated business outlook

The Group remains on track to achieve its previously communicated guidance, with the following revisions:

• Capital expenditure expected to be between R22 - R24 billion, R2 billion lower than the previous guidance of R24 - R26 billion due to ongoing capital optimisation initiatives; and
• International Chemicals Adjusted EBITDA is revised lower to US$375 to US$450 million, (previously US$450 to - US$550 million) and Adjusted EBITDA margin 8% to 10% (previously 10% to 13%). This is due to a combination of weaker macroeconomic assumptions, softer market conditions and the unplanned Louisiana Integrated Polyethylene JV LLC ethylene cracker outage in Q2FY26. Self-help measures continue to be progressed.

The operating environment is expected to remain challenging, given heightened geopolitical tensions, evolving global trade dynamics and continued softness in certain end markets impacting financial performance. Our focus on safe and reliable operations and realising more value from our self-help initiatives will enable stronger free cash flow generation, deleveraging and sustainable value for our stakeholders.

The information contained in this paragraph has not been reviewed or reported on by Sasol's auditors. More details on our financial year 2026 outlook is available in our Interim results presentation available on the Company´s website at www.sasol.com, under the Investor Centre section: https://www.sasol.com/investor-centre/financial-results

Short-form statement

This announcement has been prepared in compliance with the JSE Listings Requirements and is the responsibility of the Board and is only a summary of the information in Sasol Limited's condensed consolidated interim financial statements for the six months ended 31 December 2025. The condensed consolidated interim financial statements have been reviewed by Sasol's external auditors, KPMG, who expressed an unmodified review conclusion thereon. Financial figures in this announcement have been correctly extracted from the condensed consolidated interim financial statements. The information in this announcement has not been reviewed and reported on by Sasol Limited's external auditors.

Any investment decision should also take into consideration the information contained in the full condensed consolidated interim financial statements, published on SENS on 23 February 2026, via the JSE link. The condensed consolidated interim financial statements, including KPMG's unmodified review conclusion, are available through a secure electronic manner at the election of the person requesting inspection, and have been published and can be found on the company's website, https://www.sasol.com/index.php/investor-centre/financial-results, and can also be viewed on the JSE link, https://senspdf.jse.co.za/documents/2026/JSE/ISSE/SOL/HY26Result.pdf 

Important information

Sasol will present its interim financial results for the six months ended 31 December 2025 on Monday, 23 February 2026 at 11h00 (SA time). This will be followed by a market call, hosted by the President and Chief Executive Officer, Simon Baloyi, and Chief Financial Officer, Walt Bruns, to address questions.

Please connect to the call via the webcast link: https://www.corpcam.com/Sasol23022026
or via teleconference call link: https://services.choruscall.eu/DiamondPassRegistration/register?confirmationNumber=3605690&linkSecurityString=89ae33f44

A recording of the presentation will be available on the website thereafter at https://www.sasol.com/investor-centre/financial-results.

For further information, please contact:
Sasol Investor Relations
Tiffany Sydow, VP Investor Relations
Telephone: +27 (0) 71 673 1929
Email: investor.relations@sasol.com
Website : https://www.sasol.com/investor-centre/financial-results.

Disclaimer - Forward-looking statements

Sasol may, in this document, make certain statements that are not historical facts, based on management's current views and assumptions, and which are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements. Should one or more of these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated.  Examples of such forward-looking statements include, but are not limited to, the capital cost of our projects and the timing of project milestones; our ability to obtain financing to meet the funding requirements of our capital investment programme, as well as to fund our ongoing business activities and to pay dividends; statements regarding our future results of operations and financial condition, and regarding future economic performance including cost containment, cash conservation programmes and business optimisation initiatives;  our business strategy, performance outlook, plans, objectives or goals; statements regarding future competition, volume growth and changes in market share in the industries and markets for our products; our existing or anticipated investments, acquisitions of new businesses or the disposal of existing businesses, including estimates or projection of internal rates of return and future profitability; our estimated oil, gas and coal reserves; the probable future outcome of litigation, legislative, regulatory and fiscal developments, including statements regarding our ability to comply with future laws and regulations; future fluctuations in refining margins and crude oil, natural gas and petroleum and chemical product prices; the demand, pricing and cyclicality of oil, gas and petrochemical products; changes in the fuel and gas pricing mechanisms in South Africa and their effects on costs and product prices, statements regarding future fluctuations in exchange and interest rates and changes in credit ratings; assumptions relating to macroeconomics, including changes in trade policies, tariffs and sanction regimes; the impact of climate change, our development of sustainability within our businesses, our energy efficiency improvement, carbon and greenhouse gas emission reduction targets, our net zero carbon emissions ambition and future low-carbon initiatives, including relating to green hydrogen and sustainable aviation fuel;  our estimated carbon tax liability; cyber security; and statements of assumptions underlying such statements.

Words such as "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "endeavour", "target", "forecast" and "project" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections, and other forward-looking statements will not be achieved.  These risks and uncertainties are discussed more fully in our most recent annual report on Form 20-F filed on 29 August 2025 and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investment decisions, you should carefully consider both the foregoing factors and other uncertainties and events, and you should not place undue reliance on forward-looking statements. Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.

Please note: One billion is defined as one thousand million, bbl – barrel, bscf – billion standard cubic feet, mmscf – million standard cubic feet, oil references Brent crude, mmboe – million barrels oil equivalent. All references to years refer to the financial year ending 30 June. Any reference to a calendar year is prefaced by the word "calendar".

 

 

 

View original content:https://www.prnewswire.com/news-releases/short-form-announcement-reviewed-financial-results-for-the-six-months-ended-31-december-2025-and-updated-business-outlook-302694361.html

SOURCE Sasol Limited

FAQ

What were Sasol's key results for H1 FY26 (six months ended 31 December 2025) for SSL?

Sasol reported turnover of R122.4 billion and Adjusted EBITDA of R21.0 billion. According to the company, EBIT was R4.6 billion and HEPS was R9.27 for H1 FY26.

Why did Sasol (SSL) report lower EBIT and HEPS in H1 FY26?

EBIT and HEPS were lower mainly due to impairments and weaker commodity prices. According to the company, impairments of about R7.8 billion and softer crude and chemicals prices reduced profitability.

How did Sasol's cash flow and capital expenditure change in H1 FY26 (SSL)?

Free cash flow improved to R0.8 billion and capital expenditure fell to R8.5 billion. According to the company, lower capex and disciplined cost management supported positive cash generation.

Is Sasol (SSL) paying an interim dividend for H1 FY26 and why?

No interim dividend was declared because net debt remains above the policy threshold. According to the company, net debt was US$3.8 billion, exceeding the dividend trigger tied to below US$3.0 billion.

What operational improvements did Sasol (SSL) report for the six months to 31 December 2025?

Secunda Operations production rose about 10% and sales volumes increased ~3%. According to the company, better gasifier availability and the destoning plant reaching operation supported higher volumes.

How has Sasol (SSL) updated its FY26 outlook after the H1 results on 23 February 2026?

Sasol lowered FY26 international chemicals Adjusted EBITDA guidance to US$375–US$450m and reduced capex guidance to R22–R24 billion. According to the company, this reflects weaker markets and capital optimisation.