Darco Water Technologies (BLR) investor relations material

Executive summary

• H1 2026 returned to net profit of $1.553m from a $2.130m loss in H1 2025; reported profit included substantial grant and liability-modification gains.

• Revenue fell 12.7% YoY to $20.097m as project execution slowed in Malaysia and China; gross margin declined to 10.5% from 11.1%.

Financial highlights

• Revenue was $20.097m, down 12.7% YoY; gross profit fell 17.5% to $2.113m, while cost of sales decreased 12.1% to $17.984m.

• Other income rose to $3.609m from $675k, including a $1.566m VGF grant conversion gain, $1.814m liability-modification gain and $143k disposal gain.

• Net profit was $1.553m versus a $2.130m loss; profit attributable to equity holders was $1.170m and basic and diluted EPS was 1.25 Singapore cents versus a loss of 1.65 cents.

• Administrative expenses declined 7.5% to $4.309m; finance costs fell 21.3% to $502k, mainly due to lower interest expense after liability terms were modified.

Outlook and guidance

• Focus remains on executing secured district pneumatic waste conveyance projects, pursuing public-sector infrastructure opportunities and strengthening recurring income streams.

• Malaysia operations are prioritising working-capital efficiency; competitive pressure is expected to remain elevated in the near term.

• The remaining two tranches of the Vietnam acquisition are pending; completion is expected in 2027 and 2028, respectively, and would bring the stake to 100%.