Texaf: Recurring EBIT up in H1, but net income declines by 13.8%
Texaf Group, active in real estate, sandstone quarrying and digital services in the Democratic Republic of Congo, published its consolidated accounts as of June 30, 2026, unaudited, on September 7, 2026.
The publication highlights a divergence between current operations, which are progressing, and net income attributable to the Group, which declines due to an accounting adjustment related to the equity method valuation of the data center and a less favorable change in deferred taxes.
Revenue at €18.8M and recurring EBIT raised to €5.9M
The Group's revenue grew by 3.3% to reach €18.8M, while recurring EBITDA increased by 3.3% to €8.9M. Recurring EBIT reached €5.9M, up 4.6%, aided by depreciation charges remaining stable over the period.
Operating expenses increased by 4.1%, mainly due to personnel costs: official wage scales were revised in May 2025, salaries were indexed and the Group added a management position. The reduction in general expenses, following several cost-saving measures, offset part of this increase.
As a percentage of revenue, recurring EBIT represented 31% in the first half of 2026, a level identical to that of the first half of 2025 and close to the 32% of the first half of 2024, according to the table published by the Group.
Net income attributable to the Group brought down to €3.9M due to data center impact
Net income attributable to the Group stood at €3.9M, down 13.8% compared to the first half of 2025. The 49% stake in OADC Texaf Digital, valued using the equity method, resulted in a net loss of €1.0M.
This amount includes a non-recurring adjustment of -€654k following a modification of Congolese tax law effective January 1, 2026, which now limits the use of tax loss carryforwards to three fiscal years. According to the Group, the data center significantly increased its revenue compared to the first half of 2025, which reduced the period's loss, but this revenue does not yet cover depreciation and financing costs related to the ramp-up of the infrastructure.
The decline in net income also reflects a change in provisions for deferred taxes that was less favorable than a year earlier (+€0.5M in 2026 versus +€0.7M in 2025). In rental real estate, the main contributor, rental income advanced by 0.2% to €15,599k, with a residential occupancy rate of 96.2% in the early months, compared to nearly 100% a year earlier.
Launch of sales at Jardins de Kinsuka and target of stable recurring EBIT in the second half
The marketing of the first 42 houses from phase 1 of the "Jardins de Kinsuka" project, development of an 87-hectare site intended to accommodate nearly 1,200 homes, was opened on June 29, 2026. As of the press release date, 10 homes had been reserved and deposits paid on 8 of them, a situation the Group describes as in line with its expectations.
The segment does not yet contribute to the income statement as of June 30, 2026, with costs incurred being capitalized in inventory for €1.3M. Furthermore, construction of the "Quartier des Parcs" (19 villas and 14 apartments) is continuing, with occupancy scheduled for the second quarter of 2027 and annual rental potential of €2.6M. The Group contracted a new loan of €5.6M in the first quarter of 2026 to finance this project.
For the second half, the Group targets stable recurring EBIT, in a legislative environment that remains uncertain and could still affect wage scales and the tax regime. Barring unforeseen developments, these actions should result in recurring EBIT for the second half similar to that of the first.
