Julius Berger Nigeria Plc’s Diversification segment recorded an operating loss of N25.77 billion in the nine months ended September 30, 2026, almost four times the N6.49 billion loss reported a year earlier. 

This is according to the company’s unaudited financial statements filed on the Nigerian Exchange. 

The loss cancelled out nearly half of the N53.14 billion operating profit earned by the group’s three core segments: civil works, building works and services. 

Diversification losses outpace revenue growth 

Julius Berger describes the Diversification segment as comprising its cashew processing business in Epe, Lagos, and the expansion of its construction business into new regional markets.  

The company does not report the two activities separately, limiting visibility into their individual contributions to revenue and losses. 

  • Revenue more than tripled to N35.12 billion from N10.38 billion, representing growth of 238.4%, while the segment’s share of group revenue increased to 5.3% from 1.9%. 
  • Operating losses widened by 297.1% to N25.77 billion from N6.49 billion, as costs grew faster than revenue. 
  • The operating margin deteriorated to -73.4% from -62.5%, meaning the segment lost about N73 for every N100 of revenue, compared with approximately N63 a year earlier. 
  • All N35.12 billion of the segment’s reported revenue came from government clients, compared with N10.38 billion in the corresponding period of 2025. 

The government-client classification suggests regional construction contracts contributed to the growth, although it does not establish the revenue split between construction and cashew processing.  

Julius Berger previously announced a contract to rehabilitate roads and crossings in Cotonou, Republic of Benin, describing the project as its first step outside Nigeria. The filing did not explain the size of the segment’s loss. 

Core profits face diversification drag 

Julius Berger’s three core segments generated combined operating profit of N53.14 billion, up 73% from N30.71 billion in the corresponding period of 2025. After the Diversification loss, group operating profit stood at N27.37 billion, representing growth of only 13%. 

  • Civil works operating profit rose 50.8% to N24.67 billion, even as revenue slipped 1.1% to N346.09 billion. 
  • Building works operating profit increased 140.2% to N14.62 billion, supported by revenue growth of 25.8% to N162.82 billion. 
  • Services operating profit rose 67.6% to N13.85 billion, while revenue increased 121.8% to N113.13 billion. 
  • Income tax expense climbed 121.1% to N25.73 billion, equivalent to 71.6% of the group’s N35.92 billion pre-tax profit. 

The combination of diversification losses and a higher tax charge weighed on the group’s bottom line despite stronger operating profits across its core businesses. Profit after tax fell 44.2% to N10.19 billion, while earnings per share declined to N6.24 from N11.28. 

The company has not confirmed whether losses within the Diversification segment contributed to the high effective tax rate. 

Diversification order book limits visibility 

The Diversification segment’s remaining performance obligations stood at N48.3 billion as at September 30, 2026. This represents contracted revenue still to be recognised, with nearly half expected in the final three months of the year. 

  • The company expects to recognise N23.3 billion of the segment’s remaining contracted revenue in the fourth quarter of 2026, with N25 billion scheduled for 2027 onwards. 
  • The group’s total order book stood at N1.38 trillion, led by civil works at N603 billion and building works at N562.3 billion. 
  • Diversification accounted for approximately 3.5% of the total order book, leaving its future revenue dependent in part on additional contract awards. 
  • Julius Berger’s shares last traded at N310.80 as at October 30, 2026, up about 103% since the start of the year.