Eskom profit more than doubles to R30.3 billion as power utility strengthens turnaround

Improved operations and lower reliance on diesel generation help Eskom deliver a second consecutive profitable year

Johannesburg, 31 August 2026: Eskom has reported a major improvement in its financial performance, with the state-owned power utility recording a R30.3 billion profit after tax for the 2026 financial year, more than double the R14 billion reported in the previous year.

The results, announced on Monday, mark Eskom’s second consecutive year of profitability after years of financial losses. The utility attributed the improvement to stronger operational performance, greater cost discipline and reduced reliance on expensive diesel-powered generation.

Eskom said its earnings before interest, taxes, depreciation and amortisation (EBITDA) margin increased to 30.63%, compared with 28.75% in the previous year.

Revenue increased by 4.1%, supported largely by the 12.74% regulatory tariff increase. However, the utility also recorded a 6.2% decline in electricity sales volumes to 178 terawatt-hours, reflecting weaker industrial demand, increased embedded self-generation and energy-efficiency measures.

Operational recovery supports financial gains

The financial results come as Eskom continues to report improvements across its generation fleet.

In its latest operational update, the utility said its year-to-date Energy Availability Factor had reached 67.87% by late August, its strongest financial-year performance since 2020. Unplanned outages had also declined significantly compared with previous years.

The improvement has allowed Eskom to reduce its use of open-cycle gas turbines, which depend heavily on diesel during periods of high demand.

Eskom reported that year-to-date diesel expenditure had fallen by 82.38%, representing a saving of approximately R4.89 billion compared with the same period a year earlier.

The lower reliance on diesel is important because the fuel is considerably more expensive than the utility’s primary generation sources. Reduced diesel consumption therefore improves both the operational resilience of the electricity system and Eskom’s financial position.

A more stable power system

For households and businesses, the operational improvements have also contributed to a more stable electricity supply.

Eskom has been working to move its generation fleet from a recovery phase towards longer-term reliability and sustainability. The utility says improved plant performance is helping it meet demand more efficiently while reducing the need for emergency generation.

Earlier in August, Eskom reported that seven provinces had achieved load-reduction-free status, with more than 1.2 million customers no longer affected by the programme.

The utility has also said its Winter Outlook projected no load shedding through the end of August, supported by improved generation performance.

The progress represents a significant change from the severe electricity supply challenges South Africa experienced in previous years.

Financial challenges remain

Despite the stronger results, Eskom continues to face significant financial and structural challenges.

The utility’s gross debt increased to approximately R356 billion, while municipal customers remain a major concern because of outstanding electricity payments.

Municipalities and cities account for a substantial portion of Eskom’s electricity sales, making the recovery of overdue municipal debt important to the utility’s long-term financial sustainability.

Eskom has repeatedly warned that improving collections and maintaining financial discipline will be essential if the utility is to remain sustainable without continued reliance on government support.

The utility’s latest results therefore represent progress, but not the end of its turnaround journey.

Focus shifts to long-term sustainability

Eskom Chairman Mteto Nyati said profitability provides the utility with an opportunity to reinvest in critical areas of the business.

The company plans to direct resources towards grid expansion, improvements to distribution, Eskom Green initiatives and strengthening the reliability of its coal-fired generation fleet.

The utility is also continuing work to strengthen governance, internal controls and consequence management.

Eskom’s Group Chief Financial Officer, Calib Cassim, is expected to retire from his position during the 2027 financial year after 24 years with the organisation. The board has begun a succession process aimed at ensuring a smooth leadership transition.

For South Africa, Eskom’s financial recovery remains closely linked to the wider economy. Reliable electricity is essential for businesses, households and public services, while a financially sustainable utility is important to the country’s efforts to attract investment and support economic growth.

The latest results therefore offer a measure of encouragement, while also highlighting the work still required to ensure that Eskom’s operational improvements translate into lasting financial and energy security.