Hiap Seng Industries (1L2) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell $2.1m to $22.8m as maintenance and shutdown work volumes softened; operating profit, adjusted to exclude other gains and losses, rose $2.2m to $4.1m on cost discipline and efficiency.

• Net profit was $6.2m versus $20.1m in FY2024, which included a $19.3m one-time gain from debt waivers.

Financial highlights

• Revenue was $22.862m, down from $24.936m; gross profit increased to $7.395m from $6.117m as cost of services fell to $15.467m from $18.819m.

• Profit before tax was $6.979m versus $20.065m; net income was $6.196m versus $20.065m.

• Other income declined to $3.942m from $20.546m, mainly reflecting the non-recurrence of the $19.316m FY2024 debt-waiver gain; FY2025 also included an $834k GST input-tax reversal.

• Administrative expenses fell to $4.211m from $4.739m, including lower professional fees and no judicial-management fees; cost of services also decreased year over year.

Outlook and guidance

• FY2026 priorities include improving operational efficiency, advancing sustainability, diversifying activities, strengthening core operations and expanding market reach.

• Planned worker dormitory construction is targeted for completion in Q4 2025; the investment is intended to improve workforce living conditions and support cost efficiency.