Darco Water Technologies (BLR) H1 2025 earnings summary

Executive summary

• H1 revenue fell 16.4% YoY to $23.024m; gross profit nearly halved to $2.560m, and the period ended with a $2.130m net loss.

• Slower Projects progress, fewer new awards, contractor delays, competition and cost inflation weighed on results; O&M growth and asset disposals partly offset pressure.

Financial highlights

• Revenue was $23.024m, down 16.4% YoY; gross profit was $2.560m versus $5.106m, while cost of sales declined 8.8% to $20.464m.

• Other income rose to $675k from $126k, including a $217k factory disposal gain; administrative expenses increased to $4.658m, partly due to a $387k construction-in-progress write-off.

• Loss before tax was $2.107m versus $274k profit; net loss was $2.130m versus $197k profit, and basic and diluted EPS were both -1.65 cents versus 0.55 cents.

• Operating cash outflow improved to $2.027m from $3.082m; investing cash outflow was $177k and financing cash outflow was $1.037m.

Outlook and guidance

• Priorities include growing recurring O&M income, expanding public-sector environmental infrastructure, and maintaining financial discipline amid a challenging operating environment.

• The 2024 HDB District PWCS contract is to be followed by a 10-year O&M agreement on completion; it adds to a portfolio of 17 Smart District PWCS Systems.

• Singapore’s planned launch of over 50,000 flats from 2025–2027 supports potential PWCS deployment opportunities; project execution timelines may vary.