KUALA LUMPUR (May 27): Lower revenue and weaker margins dragged UEM Edgenta Bhd (KL:EDGENTA), an asset management and infrastructure solutions company, into a net loss in the first quarter of 2025 against a net profit the year before.

UEM Edgenta reported a net loss of RM17.95 million in the three months ended March 31, 2025 (1QFY2025), a reversal from a net profit of RM9.77 million in the same quarter a year earlier, according to its filing on Tuesday.

Its asset management segment saw a RM10.4 million drop in profit, mainly due to lower revenue and smaller margins in 1QFY2025, while results from the infrastructure solutions segment fell by RM14.1 million, mainly because of reduced revenue this quarter.

The company booked a loss per share of 2.16 sen versus earnings per share of 1.17 sen in 1QFY2024.

Khazanah Nasional’s UEM Group Bhd owns a 69.14% interest in UEM Edgenta.

The last time UEM Edgenta fell into the red was in 3QFY2020, due to pandemic-related disruptions in its infrastructure business and inventory impairments.

Revenue for the quarter slipped 4.65% to RM646.06 million from RM677.58 million, as contributions from the infrastructure solutions and healthcare support segments declined.

“The performance was primarily affected by higher operational costs, particularly in manpower, as well as the completion of several one-off contracts and cyclical factors,” UEM Edgenta said in a statement.

On a quarter-on-quarter basis, the group swung to a net loss from a profit of RM19.20 million in 4QFY2024, while revenue fell 21.16%.

No dividend was declared for the quarter under review.

Despite these headwinds, UEM Edgenta said that the company is seeing positive momentum from its international operations, which are expected to support performance moving forward.

“While 1Q posed challenges with higher costs and cyclical factors, our recent international wins in key markets like Saudi Arabia, the UAE and Singapore are already providing a foundation for [a] turnaround,” UEM Edgenta managing director and chief executive officer Syahrunizam Samsudin said.

UEM Edgenta saw its international revenue increase 24% year-on-year in Saudi Arabia and the UAE, driven by the integration and scaling of newly acquired operations.

In Singapore, new contracts in the healthcare solutions division added RM462.8 million to its order book, while Taiwan contributed RM328.7 million in additional wins.

“Our strong international footprint and diversified portfolio are central to driving our recovery efforts and ensuring sustained resilience,” Syahrunizam said, adding that the company continues to focus on cost management and operational efficiency to support its long-term recovery.

UEM Edgenta’s shares closed 1.5 sen or 1.71% lower at 86 sen on Tuesday, giving the group a market capitalisation of RM711.27 million.