Julius Berger Approves N6.8bn Dividend Amidst Mixed Start to 2026
Shareholders of Julius Berger Nigeria Plc have approved a total dividend payout of N6.8 billion, representing N4.25 per share, following the company’s strong financial performance for the 2025 financial year.
However, investors received the company’s first-quarter 2026 results with mixed reactions as earnings indicators presented a contrasting picture of operational resilience and profitability pressure.
For the first quarter ended March 2026, revenue declined sharply to N117.58 billion from N180.51 billion recorded in the corresponding period of 2025, reflecting a slowdown in project execution and contract recognition.
Despite the revenue contraction, cost of sales moderated to N148.91 billion from N153.10 billion, enabling the company to improve gross profit marginally to N28.67 billion from N27.41 billion.
The quarter was characterised by increased operating expenses, with both marketing and administrative costs rising year-on-year. In addition, impairment losses on trade receivables surged nearly fourfold to N4.59 billion from N1.56 billion, highlighting elevated credit risk and delayed customer settlements.
Finance costs also increased to N1.13 billion from N951.4 million, reflecting a higher funding burden amid prevailing economic conditions.
Notwithstanding cost pressures, Julius Berger delivered a strong operating performance. Operating profit rose significantly to N6.10 billion from N3.12 billion, representing a near doubling from the prior-year period.
Investment income further strengthened to N4.86 billion from N3.75 billion, while other income improved to N136 million from N76.2 million, providing additional support to earnings.
Consequently, profit before tax climbed substantially to N9.83 billion from N5.92 billion in the corresponding quarter of 2025.
The major drag on profitability came from foreign currency translation losses. Exchange differences on foreign operations deteriorated from a gain of N5.11 billion in the previous year to a loss of N3.47 billion during the review period.
As a result, profit after tax declined to N2.45 billion from N3.56 billion, while earnings per share weakened to N1.47 from N2.19.
Total comprehensive income was also adversely affected by foreign exchange movements, reflecting the challenging operating environment and currency volatility.
Julius Berger’s first-quarter performance reveals a company that remains fundamentally strong operationally despite facing revenue headwinds and foreign exchange challenges.
The improvement in gross profit, operating profit, investment income, and profit before tax demonstrates effective cost management and the ability to generate earnings from diversified income streams. However, the steep decline in revenue, rising impairment charges, and foreign exchange losses remain key concerns for investors.
The approved dividend out in its audited financial statements of N4.25 per share for 2025, underscores management’s confidence in the company’s long-term cash-generating capacity and reinforces Julius Berger’s reputation as a reliable dividend-paying stock.
At its closing price of N310.80 on the last trading day of the week, the stock continues to trade at a premium valuation relative to many industrial peers, reflecting investor confidence in its market leadership, strong order book, and infrastructure exposure.
Investor’s Recommendation
For existing shareholders, Julius Berger remains a quality infrastructure and construction play with attractive long-term prospects supported by government and private-sector projects. The dividend approval provides additional support for investor sentiment. We recommend a “HOLD”
However, prospective investors may consider accumulating on price weakness rather than aggressively chasing the stock at current levels, given the earnings pressure arising from foreign exchange losses and the slowdown in revenue growth.
The key catalysts to watch in subsequent quarters include contract wins, revenue recovery, foreign exchange stability, receivables management, and the sustainability of operating profit growth. A return to stronger revenue momentum could unlock further upside potential for the stock.
