Julius Berger Nigeria Plc on Friday reported a profit after tax of ₦31.11 billion for the year ended December 31, 2025, more than doubling the ₦14.97 billion recorded in 2024, even as the engineering and construction giant grappled with significant foreign exchange losses that resulted in a comprehensive loss of ₦36.55 billion, as disclosed in its financial statements released on Friday.
The company, one of Nigeria’s leading construction firms with a legacy of delivering major infrastructure projects, saw revenue surge by 38% to ₦760.61 billion from ₦568.20 billion in the previous year, reflecting robust demand for construction services and successful project execution despite challenging macroeconomic conditions.
News.ng reports that Julius Berger’s gross profit increased by 70% to ₦119.56 billion from ₦70.34 billion, with gross margin expanding to 15.7% from 12.4% in 2024, indicating improved project profitability and operational efficiency.
Operating profit rose by 176% to ₦34.91 billion from ₦12.61 billion, demonstrating strong operational leverage. The company achieved this despite a 56% increase in administrative expenses to ₦98.96 billion from ₦75.07 billion, which was more than offset by revenue growth and margin expansion.
Marketing expenses decreased marginally to ₦376.32 million from ₦870.58 million, while impairment on trade receivables increased significantly to ₦33.25 billion from ₦10.02 billion, reflecting heightened credit risk in the operating environment.
The final quarter of 2025 proved particularly strong, with revenue reaching ₦219.80 billion compared with ₦161.20 billion in Q4 2024. Operating profit for the quarter stood at ₦10.69 billion, a remarkable turnaround from the ₦1.92 billion operating loss recorded in Q4 2024.
Profit before tax for Q4 2025 was ₦16.06 billion, compared with ₦3.30 billion in the corresponding quarter of 2024, reflecting the company’s strong finish to the year.
Investment income declined by 24% to ₦15.97 billion from ₦20.26 billion, while finance costs increased by 30% to ₦4.94 billion from ₦3.37 billion, reflecting higher interest rates in the Nigerian economy.
The effective tax rate remained at approximately 30%, with income tax expenses rising to ₦14.85 billion from ₦14.53 billion in line with improved profitability.
Earnings per share stood at ₦19.28 (diluted: ₦19.28), more than doubling from ₦9.20 in 2024, representing a 110% increase and signalling strong value creation for shareholders.
Despite the strong profit performance, Julius Berger recorded a total comprehensive loss of ₦36.55 billion, compared with a comprehensive income of ₦243.69 billion in 2024. This dramatic swing was primarily driven by exchange differences on translation of foreign operations amounting to a ₦39.75 billion loss, compared with a ₦48.03 billion gain in the previous year.
Other comprehensive income items included actuarial losses on retirement benefits of ₦568.49 million, revaluation gains of ₦20.74 billion, and related tax effects totalling a loss of ₦48.96 billion.
Total assets grew by 8% to ₦1.10 trillion as of December 31, 2025, from ₦1.01 trillion in the previous year. Property, plant and equipment increased by 8% to ₦300.44 billion from ₦279.51 billion, indicating continued capital investment.
Goodwill stood at ₦38.12 billion compared with ₦36.17 billion, while right-of-use assets decreased by 5% to ₦32.92 billion from ₦34.62 billion. Investment property increased significantly to ₦2.57 billion from ₦461.60 million, suggesting strategic real estate acquisitions or revaluations.
Trade receivables decreased by 44% to ₦52.93 billion from ₦94.85 billion, a positive development indicating improved collections, while tax receivables declined by 36% to ₦13.41 billion from ₦36.81 billion.
Current assets declined to ₦624.45 billion from ₦644.97 billion. Inventories increased by 10% to ₦92.25 billion from ₦83.91 billion, reflecting work in progress on ongoing projects.
Contract assets stood at ₦89.79 billion, slightly down from ₦92.98 billion, while other financial assets increased significantly to ₦193.39 billion from ₦1.24 billion, suggesting improved treasury management.
Cash and bank balances grew by 16% to ₦193.39 billion from ₦162.38 billion, providing a strong liquidity cushion for operations and demonstrating effective cash generation despite the challenging business environment.
Trade receivables (current) increased by 22% to ₦336.29 billion from ₦104.00 billion, indicating growing business volumes but also raising questions about the cash-conversion cycle.
Total liabilities increased by 19% to ₦793.91 billion from ₦667.92 billion. Current liabilities rose by 26% to ₦163.26 billion from ₦121.54 billion, with contract liabilities increasing by 23% to ₦34.20 billion from ₦27.91 billion, suggesting strong advance payments from clients.
Trade payables increased by 18% to ₦58.21 billion from ₦43.09 billion, while other payables rose by 37% to ₦28.89 billion from ₦21.21 billion. Retirement benefit liabilities decreased by 33% to ₦212.00 million from ₦216.51 million.
Non-current liabilities increased by 22% to ₦630.65 billion from ₦546.39 billion, driven primarily by an increase in deferred tax liabilities to ₦100.08 billion from ₦89.26 billion. Contract liabilities (non-current) rose by 9% to ₦495.04 billion from ₦456.61 billion.
Total equity decreased by 12% to ₦304.64 billion from ₦345.69 billion, with equity attributable to owners also falling by 12% to ₦304.15 billion from ₦345.35 billion. The decline was primarily due to the comprehensive loss driven by foreign exchange translation adjustments.
Share capital remained unchanged at ₦800 million, with share premium at ₦425.44 million. Retained earnings declined to ₦84.93 billion from ₦98.64 billion, while the revaluation surplus stood at ₦157.31 billion compared with ₦183.52 billion.
Non-controlling interests accounted for ₦493.57 million of total equity.
The financial statements, approved by the Board on January 29, 2026, and signed by Managing Director Engr. Dr. Peer Lubasch and Executive Director of Finance Christian Hausemann reflect a company navigating the complexities of Nigeria’s volatile currency environment while delivering strong operational results.
Julius Berger’s performance comes against the backdrop of Nigeria’s infrastructure development drive and increased government spending on critical projects, including roads, bridges, and public buildings. The company’s ability to grow revenue by 38% while improving margins demonstrates its competitive positioning and execution capabilities.
However, the ₦36.55 billion comprehensive loss highlights the significant currency risks facing multinational companies operating in Nigeria. With the naira experiencing substantial volatility against major currencies, translation losses have become a critical concern for companies with foreign currency exposure.
The strong cash position of ₦193.39 billion and improved trade receivables collection provide Julius Berger with financial flexibility to pursue new projects and weather economic uncertainty. The company’s order book and project pipeline will be crucial indicators of future performance as Nigeria continues to invest in infrastructure development.
For shareholders, the more than doubling of earnings per share to ₦19.28 provides positive momentum, although the comprehensive loss may affect dividend considerations. The construction sector outlook remains cautiously optimistic, supported by government infrastructure priorities and private-sector development, though currency volatility and inflation pressures continue to pose challenges for project economics and profitability.
