Four prominent companies listed on the Nigerian Exchange Limited (NGX) have provided optimistic earnings forecasts for the third quarter of 2025, signaling potential growth and resilience across diverse sectors. These companies, spanning the financial and energy landscapes, have projected a combined profit after tax of N50.77 billion, showcasing their anticipated performance despite varying economic and industry-specific challenges. Their projections offer a glimpse into the potential performance of the Nigerian economy, as these companies operate within key sectors that influence overall economic activity.
Custodian Investment Plc, a leading player in the financial services sector, has presented the most substantial profit projection among the group, forecasting a profit after tax of N49.41 billion for the nine-month period ending September 30, 2025. This projection represents a dramatic increase of 207% compared to the N16.08 billion reported in the same period of 2024. The company attributes this projected growth to robust performance in investment returns and core operating income, predicting a surge in gross revenue to N175.81 billion from N103.91 billion in the previous year. However, this growth is accompanied by a corresponding increase in total expenses, which are expected to rise to N117.68 billion from N84.71 billion. This substantial increase in both revenue and expenses suggests aggressive expansion and investment activities, which investors will closely monitor.
Within the insurance sector, Regency Alliance Insurance Plc and STACO Insurance Plc have also released positive profit forecasts, demonstrating their capacity to navigate the challenges inherent in this competitive market. Regency Alliance Insurance Plc has projected a profit after tax of N983.88 million, underpinned by a strong insurance result of N1.29 billion and supplementary income from investments and other sources amounting to N450.96 million. While the company expects a positive operating cash flow before working capital changes of N115.02 million, the forecast also indicates a net cash outflow of N426.21 million by the end of the third quarter, which warrants further analysis to understand the underlying drivers of this projected outflow.
STACO Insurance Plc, another key player in the insurance domain, has projected a profit after tax of N176.58 million for the third quarter of 2025. This forecast is driven by a total premium income of N753.84 million and investment income of N143.54 million, contributing to an underwriting profit of N515.40 million. After accounting for forecast taxation of N75.68 million, the company projects a net cash flow of N39.23 million, leading to an anticipated increase in cash and cash equivalents to N1.70 billion from the opening balance of N1.66 billion. This positive cash flow position underscores the company’s financial stability and its capacity to meet its short-term obligations.
Eterna Plc, representing the energy sector, has projected a profit after tax of N192.13 million for the third quarter of 2025. The company anticipates year-to-date revenue of N193.47 billion, offset by a cost of sales of N182.83 billion, resulting in a gross profit of N10.64 billion. Eterna Plc’s operating cash flow before working capital changes is projected at N5.24 billion, while the net cash from operating activities is expected to reach N7.66 billion. Despite anticipated investment outflows of N467.88 million and financing outflows of N6.56 billion, the company projects a net increase in cash and cash equivalents of N640.55 million, leading to a closing cash position of N2.28 billion at the end of Q3. This indicates a healthy cash position despite significant investment and financing activities.
These projections from Custodian Investment Plc, Regency Alliance Insurance Plc, STACO Insurance Plc, and Eterna Plc collectively suggest positive momentum in their respective sectors. While Custodian Investment Plc stands out with its significant projected growth, the other companies also demonstrate resilience and an ability to generate profits within their respective industries. The overall positive outlook from these companies contributes to a sense of optimism regarding the performance of the Nigerian economy in the coming months. It’s important to remember, however, that these are forward-looking statements, and actual results may vary due to unforeseen circumstances and market fluctuations.
The reported forecasts provide valuable insights into the anticipated performance of these companies, yet it’s crucial to analyze these figures in the context of broader market conditions and industry trends. Investors and stakeholders should consider factors such as economic growth, regulatory changes, and competitive landscapes when interpreting these projections. Further analysis of the underlying assumptions and drivers behind these forecasts will be crucial in assessing the long-term prospects of these companies and their contributions to the overall economic development of Nigeria. The NGX will likely continue to monitor these companies closely, ensuring transparency and compliance with reporting standards to maintain market integrity and investor confidence.
