Engineering group Zeco Holdings Limited (Zeco) has turned a profit after a prolonged difficult period, signalling early gains from a strategic repositioning effort, though management has cautioned that the recovery remains transitional.
The group reported a ZiG3.37 million profit attributable to shareholders for the year ended 31 December 2025, reversing a loss of ZiG549,282 recorded in 2024.
The improvement was underpinned by a sharp increase in revenue to ZiG5.06 million, more than triple the previous year’s.
Gross profit rose to ZiG2.05 million, supported by stronger sales and ancillary income streams, while operating profit reached ZiG11.67 million, a notable turnaround that reflects both revenue growth and improved cost absorption.
Yet the numbers tell only part of the story.
Zeco’s results come at a time when Zimbabwe’s macroeconomic environment has shown signs of relative stability, with inflation moderating and the ZiG currency holding steadier against major currencies.
Real GDP growth of 6.6 percent in 2025 has provided a more predictable operating backdrop for industrial firms.
Against this setting, Zeco is undergoing what management describes as a structural transition.
“The group’s performance remains in transition as it pursues a new strategic focus,” the group said, indicating that current gains are as much about repositioning as they are about cyclical recovery.
Historically focused on steel fabrication and related manufacturing, the group is now seeking to unlock value through new projects and partnerships.
While some operational areas remained subdued during the period under review, management has begun implementing initiatives aimed at diversifying revenue streams and enhancing long-term profitability.
Total assets rose to ZiG154.25 million from ZiG148.91 million, reflecting investment in property, plant and equipment as well as retained earnings growth.
Despite the performance, the company opted not to declare a dividend, signalling a preference to reinvest earnings into the business as it navigates this strategic pivot.
Looking ahead, management expressed guarded optimism, noting that “positive momentum is expected in 2026, with new projects and partnerships anticipated to enhance revenue streams.”
The company also pointed to the projected GDP growth of around five percent, supported by mining and agriculture, as a favourable backdrop for industrial expansion. – TML