South Africa: Bell Equipment's HEPS falls 74%
In South Africa, industrial equipment manufacturer Bell Equipment recorded a 74% decline in headline earnings per share (HEPS) for the six months to June 2026. At the same time, the company’s share price fell 3% over the past year, as the market links its support to the possibility of a new buyout of the business by the Bell founding family, Daily Maverick reports.
Group revenue for the reporting period declined by 12.4%, while the gross margin fell from 21.94% to 19.99%. As a result, gross profit dropped by 20.2%. Despite a 9.8% reduction in total expenses, operating profit declined by 60.3%.
Failed buyout proposal
In July 2024, Bell shares rose from around R29 to more than R50 following reports of the founding family’s intention to acquire the company. The proposed price was R53 per share, but a group of minority shareholders blocked the deal, hoping to secure a higher amount.
Two years after that proposal, the company’s shares were trading at just over R40 — around 24% below the price offered during the buyout attempt. Daily Maverick notes that the Bell family’s presence supports market expectations of a possible new offer.
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Sales and cash flow
Cash generated from operating activities declined by 80%. The value of inventories decreased by 5%, which was less than the decline in revenue. The company retained a net cash position, but the amount of net cash at the end of the period and the interest coverage ratio fell significantly.
The largest decline in sales was recorded in the European OEM segment: external sales fell by 23.7%, while operating profit decreased from R52.2 million to R12.9 million. In the South African OEM business, dealer sales declined by 6.8%, while the segment moved from an operating profit of R60.9 million to a loss of R81.4 million. The publication links pressure on this business line to the combined impact of US tariffs and a weaker US dollar.
Distribution results
The group remained profitable thanks to the direct sales segment, which distributes equipment to end customers. The divisions in South Africa and Zambia generated operating profits of R84.6 million and R33.3 million respectively. Bell also pointed to positive demand and an order book in forestry and agricultural equipment, while noting the risk of droughts associated with the El Niño weather phenomenon.
