Eskom, South Africa’s state-owned power utility, has announced a historic turnaround, posting a profit before tax of R23.9 billion for the year ending March 2025 — the first positive financial result since 2017. This remarkable recovery reflects the success of its comprehensive turnaround strategy initiated in FY2024, which has begun to restore both operational stability and financial health.
The impressive financial results are underpinned by a stronger EBITDA margin of 29.05%, surpassing the previous year’s 14.67%. The company also benefits from a 12.74% tariff increase and a 14% reduction in primary energy costs, thanks to improved reliability of coal-fired power plants and reduced dependence on expensive Open-Cycle Gas Turbines (OCGT). These efficiency gains contributed to diesel savings of R16.3 billion annually.
Eskom also significantly reduced load shedding, with energy not supplied dropping from 13.2 TWh in 2024 to below 0.4 TWh in 2025. The total load shedding duration plummeted to just 175 hours — compared to 6,367 hours the previous year — with only 13 days of outages, compared to 329 days in 2024. Consequently, Eskom supplied electricity on 96% of the days in the reporting period, markedly improving service stability.
A key factor in the improved profitability was the recovery of previously disallowed fuel levy rebates from the South African Revenue Service (SARS), which provided a notable boost to Eskom’s earnings. After accounting for this once-off recovery, Eskom recorded a ‘normalised’ profit before tax of R11.9 billion.
Eskom’s efforts in governance and internal controls are also bearing fruit. Around 90% of external audit findings from FY2021 to FY2024 have been addressed and closed, signalling progress towards better compliance, although some challenges remain.
Eskom Chairman Mteto Nyati highlighted the organisation’s transformation, stating, “Eskom is increasingly a sustainable, investable company ready to compete in a liberalised, competitive energy market. The crisis inherited in October 2022 is now a thing of the past, thanks to strategic recalibration and dedicated execution.”
The CEO, Dan Marokane, added, “Our stability and performance are vital for South Africa’s economic growth. We are committed to reinvesting profits into critical infrastructure—over R320 billion over the next five years—to ensure long-term energy security and support economic development.”
Despite these successes, Eskom faces ongoing challenges, notably municipal debt, which stood at R94.6 billion as of March 2025 — a 27% increase from the previous year. Many municipalities struggle to meet their payment obligations, posing risks to Eskom’s financial stability and wider industry reforms. The utility is exploring new interventions, including prepaid models and distribution agency arrangements to improve revenue collection.
Eskom also emphasises its focus on efficiency, launching the Cost Optimisation and Revenue Enhancement (CORE) programme, which aims to deliver over R50 billion in cumulative efficiencies by 2029.
However, the organisation’s financial integrity remains under scrutiny. Eskom received a qualified external audit opinion for FY2025 due to incomplete records linked to the Public Finance Management Act. Internal control deficiencies and uncertainties regarding its sustainability — heavily reliant on government support — continue to pose risks. To address these issues, Eskom has launched a three-year Audit Recovery Programme, ambitiously targeting comprehensive internal control improvements and striving for an unqualified audit opinion.
Looking ahead, Eskom’s leadership remains committed to executing its long-term Generation Recovery Plan, strengthening governance, and fostering a resilient, sustainable power sector. As the company stabilises, its strategic focus on efficiency, innovation, and transparent management aims to secure energy supply and contribute to South Africa’s economic revival.
For more details on Eskom’s FY2025 results and ongoing initiatives, visit the Eskom website.