KUALA LUMPUR (Aug 13): Eonmetall Group Bhd (KL:EMETALL) warned of tough times ahead after the steel products maker reported its fourth consecutive quarterly loss.

The steel industry globally and in Malaysia is experiencing overcapacity and weakening demand, Eonmetall said in an exchange filing. In addition, US tariffs are adding another layer of uncertainties to the industry’s challenges, the company said.

“This has impacted the group’s efforts to re-enter the US market,” Eonmetall said. “Furthermore, the group is unable to gauge the impact of any second order effect which may affect the group’s profitability.”

Net loss for the second quarter ended June 30, 2025 (2QFY2025) was RM4.11 million, reversing from a net profit of RM702,000 in the same quarter last year, largely due to lower margins, increased raw material consumption, and higher factory overheads including electricity charges and rental costs.

Eonmetall, which mainly manufactures industrial shelves and racking systems, also incurred an impairment loss of RM1.58 million related to its steel products and trading segment.

No dividend was declared for the quarter.

For the first half of 2025, the group recorded a net loss of RM9 million, compared to a net profit of RM21.53 million during the period a year earlier. Revenue for the six-month period declined marginally by 1.6% year-on-year to RM75.13 million.

However, Eonmetall said it remains optimistic in the machinery and equipment segment due to the high crude palm oil price, which may lead to higher demand in its palm oil-related machinery.

Overall, the company added that it would be cautious in the “foreseeable future in view of slower market conditions.”

At Wednesday’s close, Eonmetall shares were unchanged at 27 sen, valuing the group at RM88.74 million. Year to date, the stock has declined 8.5%.