BRC Asia posts record $931m half-year revenue, profit up 24%

BRC attributed this to increased tonnage delivered amongst others.

BRC Asia posted a 24% rise in net profit to $52.0m for the six months ended 31 March 2026, driven by record half-year revenue of $931.0m, according to its financial report.

Revenue rose 30% to $931.0m from $715.6m a year earlier. Gross profit increased 38% to $93.3m, whilst gross margin improved to 10.0% from 9.4%.

The company attributed higher earnings to increased tonnage delivered and a greater share of value-added prefabricated products, alongside lower provisions for onerous contracts, which fell to $4.5m from $7.7m.

The fabrication and manufacturing segment generated $772.0m in revenue, up 33%, supported by domestic construction activity and contributions from Southern Steel Mesh Sdn. Bhd., which was acquired in August 2025.

The trading segment posted revenue of $159.0m, up 20%, supported by higher international trade.

Operating expenses rose 31% to $31.1m due to higher activity levels, consolidation of the Malaysian subsidiary, and costs from the Thailand unit.

Finance costs more than halved to $1.8m, supported by reduced reliance on external funding and lower interest rates.

Allowance for expected credit losses rose to $2.6m from a reversal of $0.3m a year earlier, reflecting a larger receivables base.

Net profit margin declined to 5.6% from 5.9%, whilst earnings per share increased to 18.95 cents from 15.33 cents.

As of 31 March 2026, net assets attributable to shareholders stood at $530.2m, with net asset value per share at $1.93. Cash and cash equivalents totalled $197.8m.

The company reported an order book of $1.76b, providing revenue visibility for up to five years.

The board proposed an interim tax-exempt cash dividend of 8 cents per share, representing a payout ratio of 42%.

The Building and Construction Authority projected Singapore construction demand at $50.5b in 2025 and maintained its 2026 forecast at $47b to $53b, supported by public infrastructure and housing programmes.

BRC Asia said competition in the reinforcing steel market increased due to new entrants and capacity expansion. It also noted higher energy and material costs due to supply disruptions, with partial relief from government measures for public projects.

Seah Kiin Peng, Executive Director and CEO of the Group, said construction deliveries converted the order book into earnings, adding the Group remained positioned to participate in industry activity, with overseas operations in Malaysia supporting domestic performance.