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.
Key Highlights
- Revenue: N357.38 billion (Down 13.35% YoY from N412.43 billion).
- Cost of sales: N195.27 billion (Down 9.94% YoY from N216.84 billion)
- Gross profit: N162.11 billion (Down 17.12% YoY from N195.59 billion).
- Operating profit: N125.57 billion (Down 8.82% YoY from N137.71 billion).
- Administrative expenses: N48.74 billion (Down 5.39% YoY from N51.51 billion).
- Finance costs: N15.12 billion (Down 23.08% YoY from N19.66 billion).
- Earnings per share: 429 kobo (Down 19.66% YoY from 534 kobo).
- Total assets: N1.13 trillion (Up 12.93% from N1.00 trillion as of December 2025).
- Total borrowings: N131.82 billion (Up 74.68% from N75.46 billion as of December 2025).
- Cash and cash equivalents: N45.96 billion (Up 109.99% from N21.88 billion as of December 2025).
Driving the numbers
Transcorp’s nine-month financial performance was largely affected by declining revenue from its power business, which remained the group’s largest operating segment.
- According to the segment analysis in the financial statements, the power business generated N331.50 billion in revenue before intersegment eliminations, compared with N359.41 billion in the corresponding period of 2025, representing a decline of 7.77%.
- The hospitality segment also recorded a decline, with revenue falling by 2.58% to N69.46 billion from N71.30 billion.
- The group’s corporate centre reported revenue of N50.14 billion, compared with N44.80 billion in the previous year.
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.
- Revenue from energy sent out declined to N215.11 billion from N270.91 billion, representing a reduction of N55.79 billion. This was the most significant decline among the disclosed revenue categories.
- However, capacity charge revenue increased to N72.79 billion from 70.20 billion.
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.
- Administrative expenses decreased to N48.74 billion from N51.51 billion, while the group recognised a positive impairment movement of N11.70 billion, compared with an impairment loss of N8.76 billion in 2025.
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.
- However, the group recorded a foreign exchange loss on financing activities of N3.11 billion, compared with a positive N1.65 billion in the corresponding period of 2025.
Consequently, pre-tax profit declined to N111.39 billion, while taxation increased to N36.30 billion from N33.11 billion.
- Profit after tax fell by 17.85% to N75.09 billion, with N43.62 billion attributable to shareholders of the parent company, compared with N54.29 billion in 2025.
The balance sheet
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.
- Trade and other receivables increased by N48.08 billion to N590.18 billion, while the group reported N45.56 billion in financial assets classified as debt securities, compared with no balance at the end of 2025.
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.
- Net cash generated from operating activities increased to N95.65 billion from N10.89 billion in the corresponding nine-month period of 2025.
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.
Market reaction
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.