Transnational Corporation Plc (Transcorp) reported a pre-tax profit of N111.39 billion for the nine months ended September 30, 2026, representing a 10.54% decline from N124.52 billion recorded in the corresponding period of 2025.
According to its unaudited financial statements, profit after tax also declined by 17.85% to N75.09 billion from N91.41 billion, despite lower finance costs and a favourable movement in impairment charges.
The profit decline can be attributed to the 13.35% decline in the conglomerate’s nine-month revenue to N357.38 billion from N412.43 billion, reflecting reduced revenue contributions from its power and hospitality businesses.
Transcorp’s nine-month financial performance was largely affected by declining revenue from its power business, which remained the group’s largest operating segment.
However, intersegment eliminations increased to N93.72 billion from N63.09 billion, bringing consolidated revenue to N357.38 billion.
A breakdown of revenue by product and service showed that electricity generation remained the group’s major revenue source.
In the hospitality business, room revenue declined to N46.29 billion from N47.04 billion, while food and beverage revenue decreased to N19.27 billion from N21.02 billion.
These movements contributed to the contraction in overall revenue during the reporting period.
On the cost side, cost of sales decreased by 9.94% to N195.27 billion from N216.84 billion. However, the reduction was slower than the decline in revenue, resulting in gross profit falling by 17.12% to N162.11 billion.
The group’s operating profit declined by 8.82% to N125.57 billion from N137.71 billion, despite lower administrative expenses and a positive movement in impairment charges.
This provided some support to operating profitability, offsetting part of the impact of weaker gross profit.
Finance costs also declined by 23.08% to N15.12 billion from N19.66 billion, providing additional relief to earnings.
Consequently, pre-tax profit declined to N111.39 billion, while taxation increased to N36.30 billion from N33.11 billion.
The balance sheet, however, expanded during the reporting period.
Total assets increased by N129.57 billion to N1.13 trillion as of September 2026, compared with n1.00 trillion at the end of December 2025.
The expansion was primarily supported by higher trade and other receivables, new investments in debt securities, and increased cash holdings.
On the liabilities side, total borrowings increased to N131.82 billion from N75.46 billion, driven by an increase in long-term borrowings to N105.65 billion from N35.18 billion. However, short-term borrowings declined to N26.17 billion from N40.28 billion.
Despite weaker reported earnings, the group recorded a significant improvement in operating cash flow.
Overall, the group’s net increase in cash and cash equivalents rose to N24.01 billion from N7.21 billion in the corresponding period of 2025.
Transcorp’s shares closed at N36.10 per share on Monday, October 26, 2026, on the Nigerian Exchange, according to the supplied market information.
The stock began 2026 at N45.40 per share and has since declined by 20.48% year-to-date, representing a loss of N9.30 per share.
