Hong Leong Asia Ltd. (HLA) reported a net profit attributable to shareholders of S$112.8 million for the 12 months ended 31 Dec 2025, up 28.5% year-on-year, driven mainly by higher sales volumes and an improved product mix at its China-based powertrain arm, Guangxi Yuchai Machinery Company.
HLA’s full-year revenue climbed 22.0% to S$5.18 billion, while group profit before taxation rose to S$289.4 million, compared with S$208.5 million a year earlier. The board proposed a final tax-exempt dividend of 3.0 Singapore cents per share, unchanged from FY2024, on top of the 2.0 cents interim payout made in Sep 2025. If approved at the 15 Apr 2026 AGM, the final dividend will be paid on 15 May 2026 to shareholders on record as of 6 May 2026, lifting the full-year dividend to 5.0 cents, versus 4.0 cents previously.
Segmentally, the Powertrain Solutions unit contributed S$4.48 billion in revenue, 26.3% higher year-on-year, accounting for about 86% of group turnover. Engine sales rose 29.4% to 461,309 units, with truck engine volumes up 50.7% and marine and genset engines expanding more than 24%. Building Materials delivered S$682.7 million in revenue, broadly flat on the year; stronger precast concrete volumes in Singapore offset softer ready-mix concrete prices and volumes. Other businesses, including rigid packaging and hospitality, generated S$21.4 million.
Gross profit margin widened to 18.3% from 17.2% as Yuchai benefited from a richer sales mix weighted towards heavy-duty and high-horsepower engines and ongoing cost-reduction efforts. Research and development spending (capitalised and expensed) increased to S$277.5 million, or 6.2% of Yuchai revenue, reflecting continued work on National VI/Tier 4 engines and new-energy powertrains. Finance costs fell 33.5% to S$22.9 million as the group pared debt and enjoyed lower borrowing rates.
The group cautioned that volatile input costs and supply-chain disruptions remain potential headwinds. Nevertheless, management expects continued demand for advanced engines in China, supported by data-centre and export markets, and steady construction activity in Singapore and Malaysia to underpin demand for precast and cement products. HLA plans to deepen R&D in powertrain solutions, expand batching capacity in Singapore, and enhance operational efficiency at Malaysian cement subsidiary Tasek.
Barring unforeseen circumstances, the group said it aims to deliver “satisfactory results” in 2026, aided by a strengthened order book and ongoing cost-management initiatives.