PNE Industries (BDA) investor relations material

Executive summary

• FY26H1 revenue fell 10.5% YoY to $31.29m; loss before tax was $657k and net loss was $668k, versus prior-year profits.

• Lower contract-manufacturing demand and weaker gross margin weighed on results; higher trading orders provided a partial offset.

Financial highlights

• Gross profit declined 16.0% YoY to $4.37m; gross margin fell to 14.0% from 14.9%, mainly from lower revenue and reduced economies of scale.

• Other operating income fell to $544k from $1.05m; FY25H1 included a $392k FX gain, while FY26H1 recorded a $89k FX loss in other operating expenses.

• Administrative expenses rose 3.0% to $4.95m, mainly on higher employee benefits; distribution costs fell 30.4% to $500k with lower revenue.

• Basic and diluted EPS was a loss of 0.8 cents, versus earnings of 0.5 cents in FY25H1.

Outlook and guidance

• Geopolitical tensions, Middle East conflict, oil-supply disruption and persistent supply-chain issues may raise energy, petroleum-based raw-material and other costs.

• Cost controls, operational efficiency initiatives and customer-base diversification remain priorities amid persistent pricing pressure and inflation in Malaysia and China.