BRC Asia (SGX:BEC
) has reported a net profit after tax of $52.0 million for 1HFY2026 ended March 31, an increase of 24% y-o-y.
Revenue grew 30% y-o-y and stood at a record of $931.0 million on a half year basis during the period. However, the growth was partially offset by lower steel prices, in line with a broad decline in global steel prices during the period.
Fabrication and manufacturing segment contributed $772.0 million, up 33% y-o-y, attributed to higher domestic construction deliveries and contribution from its Malaysian subsidiary, Southern Steel Mesh Sdn Bhd (SSM), acquired back in last August. Trading segment increased 20% y-o-y to $159.0 million, boosted by increase in international trade.
Gross profit saw an increase of 38% y-o-y to $93.3 million, which grew faster than its revenue due to higher tonnage of value-added prefabricated products which carries favourable margins.
Provision for onerous contract fell to $4.5 million during the period, compared to $7.7 million in 1HFY2025, which helps to further lift its gross profit. Gross profit margin improved to 10.0% from 9.4%.
Distribution expenses rose 66% to $7.0 million and administrative expenses increased 32% to $17.5 million due to higher operational costs and expense consolidation of SSM.
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Finance costs fell 52% y-o-y to $1.8 million, due to lower borrowings and a decline in interest rate.
Earnings per share rose to 18.95 cents in 1HFY2026 from 15.33 cents in 1HFY2025.
Net assets attributable to owners of the Company stood at $530.2 million on March 31 with net asset value per share of $1.93.BRC Asia’s board has proposed an interim tax-exempt cash dividend of 8 cents per ordinary share for 1H FY2026. This translates to a payout ratio of 42% and a dividend yield of 4%.
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“With our market leadership and execution track record in Singapore's reinforcing steel sector, we are well-positioned to participate fully in the emerging industry tailwind as it progresses,” says Seah Kiin Peng, executive director and CEO of BRC Asia.
Shares of BRC Asia closed 25 cents higher, or 5.62% up at $4.70 on May 8.
