Sasol stock weighs stronger FY2026 earnings against a softer outlook

Published on 09/30/2026 at 15:50 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

FY2026 adjusted EBITDA reached ZAR 61.0 billion, up 17 percent, on September 1, 2026. Net debt fell 11 percent to USD 3.3 billion, while dividends stayed suspended.

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Sasol Limited (ISIN US8038663006) was trading at EUR 12.10 at Lang & Schwarz on September 30, 2026 at 3:36 p.m. CEST, down 1.22 percent from the prior close of EUR 12.25. The company enters the latest market session with stronger FY2026 earnings but a more cautious chemicals outlook.

FY2026 earnings improve

According to Sasol on September 1, 2026, adjusted EBITDA for the fiscal year ended June 30, 2026, rose 17 percent to ZAR 61.0 billion. Turnover increased 9 percent to ZAR 272.1 billion, while earnings before interest and tax climbed 37 percent to ZAR 25.7 billion.

The comparison is favorable across several operating measures. Basic earnings per share increased 79 percent to ZAR 18.99, headline earnings per share rose 9 percent to ZAR 38.31, and capital expenditure fell 18 percent to ZAR 21.0 billion, according to Sasol in its audited results announcement dated September 1, 2026.

Debt falls, dividends remain suspended

Net debt excluding leases declined 11 percent to USD 3.3 billion at June 30, 2026, from USD 3.7 billion a year earlier. That level remains above the company threshold of sustainably below USD 3.0 billion for resuming dividends, so the board did not declare a final dividend.

Cash flow provides a mixed signal. Operating cash flow increased 22 percent to ZAR 56.7 billion, but free cash flow decreased 5 percent to ZAR 11.9 billion because elevated year-end working capital absorbed cash.

Analyst upgrade raises expectations

As The Motley Fool reported on September 9, 2026, Bank of America analyst Sashank Lanka upgraded Sasol from Neutral to Buy and raised the South African share price target from ZAR 200 to ZAR 270. The revised view places greater weight on oil operations and potential free cash flow growth.

The counterweight is the chemicals business. Sasol's FY2027 guidance calls for International Chemicals adjusted EBITDA of USD 450 million to USD 600 million, below the USD 604 million delivered in FY2026, while working capital stood at 18.3 percent of turnover against a guidance range of 15.5 percent to 16.5 percent.

Sasol stock trades below yearly high

Sasol stock was trading at EUR 12.10 at Lang & Schwarz on September 30, 2026 at 3:36 p.m. CEST, down 1.22 percent versus the Lang & Schwarz prior close of EUR 12.25 on September 29, 2026. The primary listing is on the NYSE, while the company also trades in Johannesburg.