Julius Berger Nigeria Plc has reported a 44.2% decline in profit after tax from N18.25 billion recorded in the first nine months of 2025 to N10.19 billion in the nine months ended September 30, 2026.
The construction giant disclosed this in its unaudited financial statements, which showed that revenue increased by 21.5% to N657.15 billion from N540.82 billion a year earlier.
Gross profit rose by 31.3% to N105.21 billion from N80.15 billion, supported by stronger revenue growth relative to the increase in construction and project execution costs.
Cost of sales increased by 19.8% to N551.94 billion from N460.66 billion, while the company’s gross profit margin improved to approximately 16% from 14.8%.
However, administrative expenses increased by 8.7% to N76.06 billion, compared with N69.99 billion in the corresponding period of 2025.
Marketing expenses also rose to N506.11 million from N316.62 million.
Despite the increase in operating expenses, Julius Berger recorded a significant reduction in impairment charges on trade receivables.
Impairment losses declined to N5.56 billion from N30.62 billion, representing an 81.8% reduction.
However, other gains and losses contributed N4.29 billion during the period, compared with N44.99 billion recorded in the first nine months of 2025.
The sharp reduction in other gains limited the impact of stronger revenue and gross profit on the company’s overall earnings.
Consequently, operating profit increased by 13% to N27.37 billion from N24.22 billion a year earlier.
Profit before tax also rose by 20.2% to N35.92 billion from N29.89 billion in the corresponding period of 2025.
However, income tax expenses more than doubled to N25.73 billion from N11.64 billion, significantly reducing the company’s profit after tax.
The higher tax charge pushed the effective tax rate to approximately 71.6%, compared with 38.9% in the previous year.
Earnings per share consequently declined to N6.24 from N11.28 in the corresponding period of 2025.
Meanwhile, the company’s third-quarter performance showed a sharper decline in profitability.
Revenue for the three months ended September 30, 2026, increased by 17.8% to N232.59 billion from N197.37 billion a year earlier.
However, profit after tax declined by 62.9% to N4.13 billion from N11.14 billion, while profit before tax fell by 25.8% to N12.40 billion.
Despite the weaker bottom line, gross profit for the quarter increased to N38.39 billion from N20.15 billion.
The results showed that Julius Berger maintained revenue growth and improved its gross profit margin during the nine-month period, but higher taxation weighed heavily on its net earnings.
For investors, the company’s latest financial performance highlights the difference between stronger operating activities and the decline in profit retained after tax.
