Julius Berger Nigeria Plc posted a decline in profitability for the first quarter of 2026, even as revenue remained broadly flat compared to the prior year.
According to the company’s unaudited financial statement for the period ended March 31, 2026, revenue stood at ₦177.6 billion, slightly below the ₦180.5 billion recorded in Q1 2025.
Profit Drops Sharply
Profit after tax fell to ₦2.45 billion in Q1 2026, down from ₦3.56 billion in the same period of 2025, reflecting mounting cost pressures and weaker margins.
Operating profit, however, improved significantly to ₦6.10 billion, nearly double the ₦3.12 billion posted a year earlier, indicating stronger core operations despite bottom-line pressure.
Costs and tax weigh on earnings
The company’s results show that:
Administrative expenses remained elevated
Impairment on receivables continued to impact earnings
Income tax expenses rose to over ₦7.3 billion
These factors combined to offset gains from operations and investment income.
Other comprehensive losses deepen
Julius Berger reported a total comprehensive loss of ₦1.02 billion, compared to a gain of ₦8.67 billion in Q1 2025.
The swing was largely driven by a foreign exchange translation loss of ₦3.47 billion, highlighting the continued impact of currency volatility on multinational operations.
Earnings per share (EPS) dropped to ₦1.47, down from ₦2.19 in the prior-year period, reflecting the weaker profit performance.
Context: Strong 2025 backdrop
The weaker quarterly performance comes after a strong full-year 2025, when the company reported revenue of about ₦760.6 billion, supported by sustained infrastructure activity.
Julius Berger has historically benefited from large-scale construction and engineering projects across Nigeria, with steady revenue growth over recent years.
While core operations appear to be strengthening, the Q1 results suggest that cost pressures, tax burdens, and FX volatility remain key risks to profitability in 2026.
Investors will likely watch subsequent quarters closely to see whether improved operating performance can translate into stronger net earnings.
