Darco Water Technologies (BLR) H2 2025 earnings summary

Executive summary

• FY2025 revenue was $51.4m vs $59.1m in FY2024; a more competitive tender market and project delays weighed on results. Gross margin fell to 12.3% from 20.1%, and the year ended with a $5.9m net loss vs $0.5m net profit.

• Recurring O&M revenue grew, while cash and cash equivalents in the cash flow statement increased to $8.0m from $6.9m; cash and bank balances on the statement of financial position were $9.8m.

Financial highlights

• Revenue declined to $51.407m from $59.136m; gross profit fell to $6.343m from $11.907m.

• Net loss was $5.860m vs net profit of $0.534m; loss attributable to equity holders was $4.853m, with basic and diluted loss per share of 5.17 cents vs earnings of 1.07 cents.

• Administrative expenses rose to $10.338m from $9.860m, including higher legal and professional fees and a $0.4m construction-in-progress write-off; net financial-asset impairment was $0.748m vs $0.021m.

• Operating cash flow was positive $1.015m vs outflow of $3.099m; FY2025 cash increased $1.208m, compared with a $3.878m decrease in FY2024.

Outlook and guidance

• Management plans to prioritize prudent project selection, cost control, efficient execution of the existing portfolio, and growth in recurring long-term O&M contracts.

• Singapore construction demand is forecast by BCA at $47b–$53b for 2026; planned opportunities include District Pneumatic Waste Conveyance System projects.

• Long-term demand is supported by population growth, urbanisation, industrialisation and rising environmental awareness; no financial guidance was stated.