Hor Kew Corporation (BBP) H2 2025 earnings summary

Executive summary

• FY2025 revenue and profit after tax declined YoY on lower delivery volumes and competitive tendering, while profit before tax increased to $17.3m from $16.0m.

• Higher general and administrative expenses were partly offset by a $6.8m reversal of impairment on trade receivables and contract assets, versus an $8.3m impairment loss in FY2024.

• A new production facility, Prefab +, is intended to lift precast capacity and efficiency; the order book and project pipeline were described as historically strong.

Financial highlights

• Revenue was $69.442m in FY2025, down from $82.870m; gross profit was $24.851m versus $33.181m.

• Gross margin fell to 35.8% from 40.2%, attributed mainly to stronger tender competition and lower margins on delivered projects.

• Profit before tax rose to $17.296m from $15.999m; profit after tax was $12.877m versus $13.722m, and total comprehensive income was $13.724m versus $14.639m.

• General and administrative expenses increased to $17.443m from $11.568m, including higher restoration, insurance, bad-debt write-off, staff and depreciation costs.

• Basic and diluted EPS was 24.73 cents, compared with 26.38 cents in FY2024.

Outlook and guidance

• Order books were described as stronger than ever, with a pipeline of projects lined up for the coming years.

• Focus remains on higher-margin project selection, prefabrication, advanced manufacturing investment and operational efficiency.

• Prefab + is expected to boost precast production volumes, reduce manpower reliance and improve product quality and operating efficiency.