LHT Holdings (BEI) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 3.9% to $27.08m; net profit after tax declined 48.0% to $1.16m amid softer rental demand, selling-price pressure, elevated raw-material costs and reorganisation costs.

• Core pallet and packaging revenue remained stable, while relocation, woodchip production cessation and an ERP rollout shape the operating transition into FY2026.

Financial highlights

• Revenue was $27.083m versus $28.192m; gross profit was $10.142m versus $11.439m; PBT was $1.724m versus $3.298m.

• Net income was $1.158m versus $2.227m; EPS was 2.17 cents versus 4.18 cents. Income tax expense was $0.566m versus $1.071m.

• Other income was $2.848m versus $3.475m, including a $0.855m disposal gain; other expenses rose to $1.263m from $0.232m and included a $0.435m PPE impairment and $0.706m PPE write-offs.

• Net cash from operating activities rose to $6.008m from $3.060m; year-end cash and cash equivalents were $4.873m versus $10.749m, mainly reflecting increased fixed-deposit placements.

Outlook and guidance

• Priorities are execution, cost efficiency, customer responsiveness, service reliability and prudent cost control; a new ERP system is intended to streamline processes, improve visibility and tighten cost control.

• Additional sales leadership is intended to deepen customer engagement, improve market coverage and broaden revenue; IPPC and pest-free pallets will be promoted in existing and new markets.

• Pallet rental demand is expected to remain strong in the near to mid-term, though regional growth is expected at a slower pace; other waste-management opportunities are being pursued after woodchip production ends.

• From FY2026, Singapore pallet production will be consolidated at Tuas and primarily relocated to Malaysia; woodchip production and general horticultural wood-waste collection are scheduled to cease in February 2026, while used-pallet recycling will continue.