Denel recorded a 15.8% increase in revenue, from R1.272 billion to approximately R1.473 billion, while cash generated from operations also improved.
This is according to the company's 2025/26 Annual Report, which also shows that Denel continues to build a substantial pipeline of business opportunities exceeding R30 billion.
Denel Group Chief Executive Officer Tsepo Monaheng said the state-owned aerospace and defence entity’s recovery must ultimately be measured by improved delivery, stronger financial management, sound governance and its ability to convert market opportunities into sustainable revenue and cash flows.
“Our focus is clear: execute our existing programmes, strengthen our financial and internal control environment, secure new business, invest in our critical technologies and people and ensure that Denel remains relevant to the defence and security needs of South Africa. Our mandate goes beyond financial performance – it is about safeguarding and strengthening the country’s sovereign defence capabilities,” he said in a statement on Friday.
Monaheng reaffirmed the company’s commitment to strengthening its operational and financial sustainability while preserving the critical capabilities required to support South Africa’s sovereign defence mandate.
During his recent appearance before the Portfolio Committee on Defence and Military Veterans to present Denel’s 2025/26 Annual Report, Monaheng acknowledged the significant challenges facing the organisation while highlighting progress made in stabilising the business and positioning it for sustainable recovery.
“Denel’s turnaround is a journey that requires discipline, accountability and sustained execution. We are under no illusion about the challenges that remain, particularly around liquidity, financial controls and operational sustainability. At the same time, we have made important progress in stabilising the organisation and rebuilding the foundations for a stronger Denel,” Monaheng said.
The company said closer alignment with the Department of Defence and Military Veterans, the South African National Defence Force (SANDF), Armscor and other stakeholders provides an important platform for strengthening Denel’s strategic role and preserving critical defence capabilities. -SAnews.gov.za
