Eskom’s big turnaround — and what it means
For the six months ending 30 September 2025, Eskom reported an after-tax profit of R24.3 billion — roughly a 37% increase compared with the same period last year (R17.8 billion).
This strong half-year performance comes after a multi-year recovery plan by the utility, signalling what many see as a marked turnaround in its fortunes.
Diving into the numbers: profit before tax rose 41% to R32.5 billion, while earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 11% to R68.5 billion.
Overall revenue also rose 4% to approximately R191.3 billion, largely driven by a tariff increase.
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What improved — and why the recovery worked
The recent profits are not just due to higher electricity prices: Eskom’s operational performance appears to have genuinely improved.
Reduced load-shedding and stable supply: For the six-month period, outages were limited to just 26 hours over four evenings — a dramatic contrast to the rolling blackouts that had plagued South Africa in prior years.
More generating capacity: Key power plants returned to service. Kusile Power Station brought new baseload capacity online (Unit 6, 799 MW), and Medupi Power Station had a unit (Unit 4, 720 MW) return after repairs.
Cost and loss control: Eskom reduced reliance on expensive backup generation, saving on diesel and lowering primary energy costs, while combating non-technical losses (like illegal connections and meter tampering).
These improvements — combined with the tariff increase — seem to have underpinned Eskom’s return to profitability.
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But serious challenges remain
Despite the profit and improved reliability, Eskom’s path forward remains risky:
Municipal debt is ballooning — by the end of September 2025, arrears owed by municipalities stood at roughly R105 billion, up from about R90.5 billion in March. This threatens cash flow and could undermine future investments.
Sustainability of gains uncertain — analysts warn that half-year results are often better than second-half results. Given seasonal demand swings, maintenance schedules, and other structural pressures, Eskom may find it difficult to sustain such high profits.
Debt burden remains huge — While some costs have been contained, the overall legacy debt and liabilities are still significant.
Thus, while the turnaround seems real for now, its long-term sustainability depends heavily on structural reforms: better municipal payment compliance, sensible tariff paths, and continued investment in plant maintenance and renewable integration.
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What this means for South Africa — and for you
For many South Africans, the improved performance of Eskom offers hope. Less load-shedding means more reliable power — good for households, businesses, and the broader economy.
Eskom’s renewed profitability also reduces pressure on taxpayers and sets the stage for reinvestment in infrastructure, including transmission upgrades and possibly renewable energy expansion.
But the municipal debt problem remains a ticking time bomb, and consumers still face tariff increases — meaning stability may come at a cost.
In short, while Eskom’s R24.3 billion profit is a milestone, it is not yet a guarantee of long-term recovery. The road ahead will require discipline, oversight, and structural reform.