Mun Siong Engineering (MF6) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 4.7% YoY to $31.8m, but gross profit fell 78.5% to $0.3m and net loss widened to $3.5m from $1.6m.

• Higher work volumes in Singapore and Taiwan were offset by weaker Malaysia and US activity, lower-margin job mix and US fabrication cost overruns.

Financial highlights

• Revenue was $31.8m, up 4.7% YoY; cost of sales increased 9.4% to $31.4m, reducing gross margin to 1.1% from 5.3%.

• Operating loss was $3.4m versus $1.4m; loss before tax was $3.4m versus $1.3m, and net loss was $3.5m versus $1.6m.

• Other income and recoveries increased to $0.8m from $0.3m, including asset disposal gains and recovery of past medical claims.

• Excluding other income and recoveries, operating losses were $4.2m versus $1.9m; EBITDA was negative $1.6m versus positive $0.2m.

Outlook and guidance

• Pengerang facilities began a three-month Creditors Reliability Test in late June; work volume could increase depending on its outcome.

• US operations are discussing initial small-scale orders with prospective Midwest clients and seeking expanded work from existing clients; technical and compliance spending is expected.

• Financial resources will prioritize performance and obligations; no FY2025 dividend is planned.