Transnational Corporation Plc has released its H1 2026 results for the period ended June 30, 2026, reporting a pretax profit of N75.9 billion, representing an 11.45 per cent year-on-year decline from N85.7 billion in H1 2025.

The decline in H1 pretax profit was driven in part by a weaker second-quarter performance.

Q2 pretax profit fell to N25.2 billion from N36.3 billion in Q2 2025, down 30.51 per cent year-on-year, and came in sharply below Q1 2026 levels.

Profit attributable to owners of the parent settled at N32.9 billion, down 20.72 per cent from N41.4 billion, while basic earnings per share fell to 323 kobo from 408 kobo, down 20.83 per cent year-on-year.

Interestingly, the Company-only results, Transcorp Plc as a standalone entity, excluding subsidiaries such as Transcorp Power and Transcorp Hotels, told a different story, with profit before tax virtually unchanged at N30.14 billion, up a marginal 0.06 per cent from N30.12 billion, supported largely by higher dividend income from subsidiaries.

Highlights of the Group’s performance for H1 2026 compared with H1 2025 show revenue at N241.5 billion, down 13.44 per cent year-on-year from N279.0 billion.

Gross profit stood at N109.7 billion, down 15.76 per cent year-on-year from N130.3 billion, while operating profit came in at N81.6 billion, down 11.34 per cent year-on-year from N92.0 billion.

Pretax profit was N75.9 billion, down 11.45 per cent year-on-year from N85.7 billion, while profit after tax was N54.4 billion, down 16.58 per cent year-on-year from N65.2 billion.

Basic earnings per share stood at 323 kobo, down 20.83 per cent year-on-year from 408 kobo.

Total assets rose to N1.10 trillion, up 9.70 per cent from N1.00 trillion at December 2025, while cash and cash equivalents fell to N20.8 billion, down 5.13 per cent from N21.9 billion.

For the Company-only performance in H1 2026 compared with H1 2025, revenue stood at N37.55 billion, up 4.81 per cent year-on-year from N35.82 billion.

Operating profit was N32.69 billion, down 1.38 per cent year-on-year from N33.15 billion, while profit before tax stood at N30.14 billion, up 0.06 per cent year-on-year from N30.12 billion.

Profit after tax was N28.27 billion, up 1.61 per cent year-on-year from N27.82 billion, while earnings per share stood at 278 kobo, up 1.46 per cent year-on-year from 274 kobo.

Total comprehensive income was N25.23 billion, down 11.60 per cent year-on-year from N28.53 billion.

The pressure on the Group’s topline was broad-based across segments in H1 2026.

Revenue declined to N241.5 billion from N279.0 billion, while cost of sales eased to N131.8 billion from N148.8 billion, but not enough to fully offset the revenue decline.

Gross profit fell 15.76 per cent to N109.7 billion, with gross margin slipping to 45.44 per cent from 46.69 per cent.

Other income fell sharply to N657.7 million from N1.88 billion, down 64.97 per cent, removing a support line that had boosted the prior-year result.

The Group recorded a N1.96 billion impairment credit/write-back on financial assets, a reversal from the N4.86 billion impairment loss booked in H1 2025.

Administrative expenses declined 12.75 per cent to N30.8 billion from N35.3 billion, helping contain the decline in operating profit to 11.34 per cent, compared with the steeper 13.44 per cent drop in revenue.

Finance income nearly halved, falling 58.77 per cent to N2.1 billion from N5.1 billion, while finance costs also declined 54.73 per cent to N6.4 billion from N14.2 billion.

However, the Group swung from a N2.77 billion foreign exchange gain in H1 2025 to a N1.36 billion FX loss in H1 2026, an adverse swing of about N4.13 billion.

Taxation rose 4.83 per cent to N21.5 billion despite lower pretax profit, pushing the effective tax rate higher and worsening the decline in profit after tax.

Total comprehensive income fell 26.65 per cent to N48.3 billion, further weighed down by a N6.02 billion fair-value loss on equity instruments recorded under other comprehensive income.

Quarter-on-quarter, Q2 2026 was notably weaker than Q2 2025.

Revenue fell 14.40 per cent to N116.4 billion, gross profit dropped more sharply by 32.03 per cent to N39.2 billion, operating profit declined 16.74 per cent to N31.4 billion, and profit after tax dropped 42.08 per cent to N16.5 billion, indicating the second quarter bore the brunt of the half year’s pressure points.

Power remained the Group’s biggest revenue driver.

The segment revenue edged lower to N229.0 billion, down from N243.1 billion.

As a result, the segment’s pretax profit declined to N57.7 billion from N61.7 billion.

Hospitality revenue eased to N44.4 billion from N46.9 billion, though its segment pretax profit improved to N13.7 billion from N12.2 billion.

The corporate centre posted revenue of N37.5 billion, up from N35.8 billion, with pretax profit broadly flat at about N30.1 billion.

The balance sheet expanded during the period, but this was accompanied by a significant build-up in receivables and borrowings.

Total assets rose 9.70 per cent to N1.10 trillion, though trade and other receivables alone stood at N636.6 billion, up 17.43 per cent, representing a large portion of the increase.

Total borrowings rose 54.59 per cent to N116.7 billion, with long-term borrowings surging 203.05 per cent to N106.6 billion, while net debt climbed to roughly N95.9 billion from N53.6 billion.

Total equity rose 4.09 per cent to N367.8 billion, supported by retained earnings of N197.8 billion, up 9.16 per cent.

Net cash flow from operating activities remained negative at N13.35 billion, though this improved from a negative N22.57 billion in H1 2025.

Investing activities recorded a net cash outflow of N3.56 billion, mainly reflecting capital expenditure.

The major pressure points were lower revenue, weaker gross profit, lower finance income, an FX loss, higher taxes, negative operating cash flow, and rising borrowings.

The balance sheet is larger, but much of the growth is tied up in receivables rather than cash.

Shares of Transcorp closed lower on Wednesday, July 22, 2026, at N41.40, down 0.4 per cent from N41.55 previously.

The stock began the year at N45.40 and hit a high of N55.00 in February.

It later moderated sharply, leaving it down 8.81 per cent from its year-opening price.

It ranks 112th on the NGX by year-to-date performance.

Transcorp is the 56th most traded stock on the Exchange over the past three months (April 21–July 22, 2026), with a total volume of 154 million shares traded across 23,128 deals worth N6.69 billion, averaging 2.44 million shares per session valued at N106 million.