Transnational Corporation Plc (Transcorp Group) has reported a pre-tax profit of N38.81 billion for the third quarter of 2025, representing a 53.84% year-on-year increase compared to the same period in 2024, underscoring continued momentum in its energy operations and operational efficiency.
The performance lifted the nine-month pre-tax profit to N124.52 billion, up 18% year-on-year, putting the conglomerate just 8% short of its full-year 2024 profit. Revenue for Q3 surged 53.97% year-on-year to N133.76 billion, while nine-month revenue climbed 38.89% to N413.44 billion, already surpassing the company’s full-year 2024 figure.
The growth was largely driven by the energy business, which generated N270.91 billion, accounting for 66% of total nine-month revenue, reflecting the strategic focus on power and energy efficiency across subsidiaries such as Transcorp Power and Transafam Power.
Financial highlights
The company’s unaudited results show continued improvement across key financial metrics compared to Q3 2024:
- Revenue: N133.76 billion, up 53.97% YoY
- Cost of sales: N68.08 billion, up 43% YoY
- Gross profit: N65.68 billion, up 67.26% YoY
- Operating profit: N45.73 billion, up 64.40% YoY
- Net finance income: N5.79 billion, up 68.01% YoY
- Post-tax profit: N26.24 billion, up 55.57% YoY
- Earnings per share: N1.26, up 530% YoY
- Total assets: N940.89 billion, up 26.19%
- Shareholders’ funds: N309.57 billion, up 13.94%
Operational efficiency and margins
A detailed review shows that revenue growth outpaced both cost of sales and operating expenses, resulting in improved profit margins. Gross profit margin rose to 49% from 45% in Q3 2024, while operating profit margin increased to 34.19% from 32.02%.
Net finance income expanded by 68%, supported by improved treasury operations and a reduction in finance costs. Total borrowings dropped to N80.05 billion from N88.51 billion, reflecting stronger leverage management.
Balance sheet strength
Total assets expanded by 26% to N940.89 billion, primarily due to a 157% increase in investments in financial assets, which now stand at about N47 billion. Property, plant, and equipment remained the largest component, at N318.99 billion.
On the equity side, shareholders’ funds grew 13.94%, supported by retained earnings and improved profitability. Retained losses narrowed to N149.69 billion, compared to N112.32 billion in 2024. However, trade and other payables remained elevated at N357.61 billion, representing over 57% of total liabilities — a sign that working capital pressures persist despite improved cash flows.
Commenting on the results, Dr. Owen Omogiafo, OON, President/Group CEO of Transcorp Plc, said the performance “demonstrates the successful execution of strategic direction, operational excellence, and portfolio-wide efficiency.” She added:
“Driven by our core purpose to ‘Improve Lives and Transform Africa’, we continue to optimize our businesses to deliver superior stakeholder value.”
However, Transcorp’s share price fell slightly by 0.5% to N48.15 at the close of trading on October 27, 2025, though the stock has gained 10.1% year-to-date, reflecting investor confidence in the company’s long-term growth.
Energy Market Growth
Analysts say Transcorp’s strong energy performance aligns with Nigeria’s ongoing electricity sector reforms, which are encouraging private investment in generation and grid efficiency. With its growing footprint in hospitality, power, and oil and gas, Transcorp is increasingly positioned as a diversified infrastructure and energy conglomerate.
Analysts also note that the group’s performance reflects a broader shift among Nigerian listed companies toward cost optimization amid inflationary pressures. While Transcorp’s borrowings have declined, high trade payables indicate that short-term liabilities remain an area to monitor.
In comparison with other listed Nigerian conglomerates, Transcorp’s growth trajectory has outpaced several of its peers in profitability and sector diversification. Transcorp’s 55.6% post-tax profit growth therefore positions it among the best-performing diversified groups on the Nigerian Exchange.
Analysts have noted that Transcorp’s power business remains the primary earnings catalyst and differentiator in the Nigerian conglomerate landscape, citing its ability to sustain growth even amid tight macroeconomic conditions.
Looking ahead, analysts believe Transcorp’s ongoing investment in financial assets, hospitality, and power infrastructure could strengthen earnings stability through 2026. The group’s balance sheet position and declining leverage also signal room for expansion financing if new opportunities arise in the power or upstream energy segments.
