TBK & Sons Holdings Limited reported a turnaround for the six months ended 31 December 2025, posting a net profit attributable to shareholders of RM0.98 million versus a RM6.17 million loss a year earlier. The swing was driven primarily by a RM6.77 million gain from the disposal of four parcels of freehold land in Johor.

\n\nRevenue grew 7.5% year-on-year to RM47.52 million, fuelled by a 19.9% increase in Malaysian civil and structural projects to RM43.28 million. PRC project turnover fell 48.1% to RM4.23 million amid a sluggish mainland construction market. Civil works remained the core contributor, accounting for RM41.26 million, or 86.8% of total revenue.

\n\nProfitability at the operating level remained pressured. Gross profit slipped 26.2% to RM2.90 million and margin narrowed to 6.1% from 8.9%, reflecting lower project margins and higher subcontracting costs. Administrative expenses were broadly flat at RM9.15 million, while finance costs surged to RM1.92 million (2024: RM0.18 million) after the issuance of USD9.5 million (RM38.78 million) in promissory notes carrying 2% monthly interest.

\n\nA net reversal of expected-credit-loss provisions amounting to RM1.78 million (2024: RM0.23 million charge) partially offset higher finance expenses. Basic earnings per share came in at 0.10 sen compared with a loss per share of 0.62 sen in the prior-year period.

\n\nThe balance sheet showed cash and cash equivalents of RM91.44 million, up from RM25.27 million at end-June 2025, supported by RM38.78 million promissory-note proceeds and RM10.32 million net cash from the land sale. Current and quick ratios were unchanged at 2.0 times, but the gearing ratio jumped to 57.8% from 3.9% due to the new debt.

\n\nThe Board declared no interim dividend. Management expects project tendering in Malaysia to remain competitive and continues to focus on receivables collection and selective bidding in the PRC.