Koh Brothers Eco Engineering Limited reported a net loss attributable to equity holders of S$5.7 million for the six months ended Jun 30, swinging from a net profit of S$3.0 million a year earlier, as elevated material and procurement costs eroded margins despite stronger project activity.

Revenue rose 29% year-on-year (YoY) to S$144.1 million, driven by higher work recognition from ongoing Engineering and Construction contracts. Gross profit, however, fell to S$7.5 million from S$13.9 million, reflecting a 39% rise in cost of sales amid supply-chain disruptions and geopolitical uncertainties.

The group ended the period with cash and bank balances of S$61.3 million and net asset value per share of 4.04 Singapore cents, down from 4.27 cents at Dec 31, 2025. Its order book stood at about S$1.0 billion, providing earnings visibility over the medium term.

Engineering and Construction remained the key revenue contributor, supported by projects such as the Multi-Storey Lorong Halus Bus Depot, Toa Payoh integrated development works, Tuas Water Reclamation Plant and intra-terminal tunnels for Changi Terminal 5. Nevertheless, higher professional fees and cost inflation compressed segment margins.

Looking ahead, management is prioritising disciplined project execution, prudent cost management and timely administration of variation orders. The company is selectively tendering for new contracts to maintain a healthy order pipeline and is working toward a proposed transfer to the SGX Mainboard to broaden its investor base.

Chief executive officer Paul Shin noted that while project momentum improved during the half, profitability was weighed down by cost pressures linked to ongoing geopolitical conflicts and logistics bottlenecks. He added that the S$1.0 billion order book offers a solid platform for future earnings, and said the group will leverage its engineering expertise to capture opportunities in renewable energy, including sustainable aviation fuel, and in larger-scale infrastructure projects regionally.