Eskom Returns to Profitability After Eight-Year Struggle, Though Structural Issues Remain
South Africa’s state-owned power utility Eskom has reported a profit before tax of R23.9-billion for the 2025 financial year, marking its first profitable period since 2017. Recent analysis shows this turnaround represents a significant milestone for the embattled electricity provider, which has faced operational and financial challenges for nearly a decade.
The return to profitability comes amid improved operational performance and reduced loadshedding throughout 2025. Industry data reveals that strategic interventions and maintenance improvements have contributed to this positive financial outcome, though research indicates persistent structural challenges continue to threaten long-term sustainability.
Business Leadership South Africa CEO Busi Mavuso welcomed the development in her weekly newsletter, noting that Eskom’s improved financial health provides “welcome positive news for the power utility and the broader economy.” However, she cautioned that significant work remains to ensure reliable electricity supply and address underlying infrastructure issues.
Energy sector experts suggest that while the profit represents important progress, it must be viewed in context of the utility’s substantial debt burden and aging generation infrastructure. According to recent analysis of energy sector transformations, successful turnarounds require sustained investment and strategic planning over multiple years.
The reduction in loadshedding has been particularly notable this year, with operational data showing significantly fewer power interruption days compared to previous years. This improvement has provided relief to businesses and households alike, though industry reports suggest that diversification toward alternative energy sources remains crucial for long-term grid stability.
Financial analysts note that Eskom’s profitability could signal a turning point for South Africa’s energy landscape. Economic research confirms that reliable energy infrastructure forms the foundation for sustainable economic growth, making Eskom’s performance critical to the country’s broader development objectives.
Looking forward, energy sector observers emphasize that maintaining this positive trajectory will require continued focus on operational efficiency, infrastructure investment, and strategic partnerships. While the return to profitability marks an important milestone, most analysts agree that comprehensive reform remains essential for ensuring South Africa’s energy security in the coming decades.
