Masimba Holdings Limited is accelerating its strategic pivot toward private sector projects after delivering steady financial growth for the year ended December 31, 2025, positioning the construction group to cushion itself from public-sector funding pressures.

The infrastructure and construction firm recorded a 10% increase in revenue to US$61.5 million, up from US$56.1 million in 2024, largely driven by activity in the housing development segment.

Net profit rose marginally by 2% to US$6.5 million, while operating profit edged up to US$8.9 million, reflecting what management described as disciplined execution in a stabilising economic environment.

Chairman Gregory Sebborn said the company’s deliberate shift away from reliance on government infrastructure contracts is beginning to reshape its earnings base.

“The successful strategic shift towards the private sector, which now contributes 56% of revenue, up from 46%, has improved the business’s cash flow and established a solid foundation for growth,” Sebborn said.

The move comes as contractors across Zimbabwe increasingly face payment delays linked to domestic liquidity constraints, forcing construction companies to rebalance their project portfolios.

While acknowledging ongoing government infrastructure programmes, management warned that execution risks remain.

“We remain mindful of potential project delays due to domestic funding and liquidity constraints,” Sebborn added.

Masimba’s contracting division enters 2026 supported by a US$278 million order book, spanning mining, building and road construction projects.

The group also invested in new capacity, acquiring a state-of-the-art asphalt plant to strengthen road construction operations, while subsidiary Stermrich expanded production through the purchase of a concrete precast manufacturing machine.

Meanwhile, the Impali housing development project in Shurugwi is nearing completion, with property sales having commenced in the final quarter of 2025 — a development expected to support future earnings growth.

Management attributed the group’s performance partly to improved macroeconomic conditions, noting Zimbabwe’s economy expanded by 6.6%, supported by mining output and a 24% rebound in agriculture.

Government-led infrastructure rehabilitation programmes also sustained activity across the construction sector.

The company highlighted improved monetary stability, citing a decline in ZWG inflation from 86% to 15% alongside a relatively stable exchange rate environment.

Despite the positive outlook, Masimba flagged several structural risks facing contractors, including limited ZWG liquidity and policy shifts toward a mono-currency system by 2030.

“The Ministry of Finance’s policy to settle contractor invoices in ZWG creates potential liquidity considerations,” the group said.

Management indicated that diversification across sectors and clients remains central to its risk mitigation strategy.

Reflecting confidence in its financial position, the board declared a final dividend of 0.34 US cents per share, bringing the total dividend for 2025 to 0.61 US cents, up from 0.47 US cents in the previous year.

The dividend is scheduled for payment around April 24, 2026, to shareholders registered by April 17.

As Masimba approaches its 75th anniversary in 2026, management said the focus remains on operational efficiency, technical excellence and converting economic challenges into growth opportunities.

“The Group is confident in its agility and resilience to navigate the evolving economic landscape,” management said.