Aedge Group Limited Returns to Profitability in 1HFY2026; Reports Strong Revenue Growth and Improved Margins

Key Financial Highlights

• Revenue: Surged 30.2% year-on-year to S\$17.3 million in 1HFY2026.
• Gross Profit: More than doubled to S\$3.47 million, with gross profit margin increasing from 12.1% to 20.0%.
• EBITDA: Improved significantly to S\$3.1 million, representing a 184.2% increase.
• Net Profit: Returned to profitability with S\$1.06 million, compared to a net loss of S\$0.65 million in 1HFY2025.
• Segmental Performance:
  • Engineering Services: Revenue up 25.4% to S\$4.98 million.
  • Transport Services: Revenue up 39.4% to S\$3.62 million.
  • Investment Properties: Revenue up 274.7% to S\$1.57 million, driven by full occupancy at Amethyst House.
  • Security and Manpower Services: Revenue up 13.2% to S\$7.17 million.
• Cash Generation: Net cash from operating activities was S\$1.96 million.

Operational and Strategic Developments

The strong performance in 1HFY2026 was attributed to improvement across all business segments. Notably, the Engineering Services segment benefited from increased project recognition, while Transport Services secured contract renewals with expanded scope and improved margins. The Security and Manpower Services segment onboarded new customers and expanded project requirements with existing clients. The Investment Properties segment saw full revenue contribution, with Amethyst House achieving 100% occupancy and Beryl House progressing towards regulatory approval for partial conversion into worker accommodation.

The Group’s return to profitability was driven by disciplined contract selection, improved asset utilisation, and the recurring income stream from investment properties. Execution of higher-margin contracts was a key driver for the substantial rise in gross profit and margin improvement.

Management Commentary

Mr Poh Soon Keng, Executive Chairman and CEO: “The Group’s performance in 1HFY2026 reflects progress in strengthening fundamentals, with improved discipline in contract selection, better asset utilisation, and meaningful contribution from investment properties providing recurring income. We are encouraged by growth momentum and will focus on disciplined project tendering, execution, efficiency, and prudent capital management to create greater returns for shareholders.”

Outlook and Industry Trends

• Construction Demand: Singapore’s Building and Construction Authority projects steady construction demand (S\$47–53 billion) in 2026, supported by major developments including Changi Terminal 5, Marina Bay Sands IR2 expansion, New Tengah General & Community Hospital, Downtown Line 2 Extension, and Thomson-East Coast Line Extension.
• Inflation and Cost Pressures: Singapore’s core and overall inflation remained at 1.2% in 2025. The Monetary Authority and Ministry of Trade and Industry anticipate greater price pressures in 2026 as imported costs decline more slowly and regional inflation rises. Domestic labour costs are expected to increase as productivity growth normalises.
• Forward Guidance: Barring unforeseen circumstances, the Board is cautiously optimistic for stronger revenue and profitability in 2HFY2026, supported by recent contract wins across all segments and the progressive ramp-up of dormitory operations under Investment Properties.

Shareholder-sensitive and Price-moving Information

• Return to Profitability: The Group’s move from net loss to net profit is a significant turnaround, likely to positively impact investor sentiment and share value.
• Margin Improvements: The substantial rise in gross profit margin (from 12.1% to 20.0%) could signal improved operational efficiency and profitability, factors that generally drive share price appreciation.
• Expansion of Investment Properties: Full occupancy of Amethyst House and regulatory progress for Beryl House’s conversion may provide a new recurring income stream, enhancing earnings visibility.
• Contract Wins: Recent contract renewals and new awards across engineering, transportation, and security segments, combined with the ramp-up of dormitory operations, underpin optimism for 2HFY2026 performance.
• Cash Generation: The Group’s ability to generate S\$1.96 million in net operating cash strengthens its financial position and ability to pursue growth initiatives.
• Industry Tailwinds: Steady construction demand and major national infrastructure projects may provide sustained opportunities for Aedge’s engineering and transport segments.

About Aedge Group Limited

Established in 2000 and based in Singapore, Aedge Group Limited is a multi-services provider offering engineering services, transportation services, security and manpower services, and investment properties. This comprehensive offering supports diverse customer needs across various industries.

For more information, visit www.aedge.com.sg or contact Investor Relations at [email protected].

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors are advised to exercise their own judgment and consult professional advisors before making investment decisions. Past performance is not indicative of future results. The information presented is based on unaudited financial results and may be subject to change.

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