KUALA LUMPUR (Nov 11): Tex Cycle Technology (M) Bhd (KL:TEXCYCL) reported a 6% decline in its third quarter net profit due to higher resource allocation for its waste treatment operations, even as revenue surged from its newly acquired subsidiary.

Its net profit for the quarter ended Sept 30, 2025 (3QFY2025) fell to RM2.26 million from RM2.41 million a year earlier. However, revenue for the quarter jumped 67% to RM17.71 million from RM10.63 million, driven by contributions from Meridian World Sdn Bhd, which was recently acquired under its recovery and recycling division.

No dividend was declared for the quarter under review, the company's filing with Bursa Malaysia showed.

“Our growth this quarter reflects sustained momentum in the waste management and recycling segment, which continues to see encouraging demand,” said group chief executive officer Gary Dass Anthony Francis in a statement accompanying the results.

He added that the group is progressing well in its renewable energy initiatives, particularly with the commissioning of Tex Cycle (P2) Sdn Bhd’s biomass gasification power plant, which has successfully completed acceptance tests and performance assessments under the Sustainable Energy Development Authority (SEDA) requirements.

Moving forward, Tex Cycle noted that despite a challenging global economic environment, demand in Malaysia’s scheduled waste management sector remains encouraging, underpinned by greater enforcement and sustainability initiatives from the Ministry of Natural Resources and Environmental Sustainability.

For the nine-month period ended Sept 30, 2025 (9MFY2025), Tex Cycle’s net profit fell to RM7.43 million from RM11.51 million a year earlier, despite revenue surging 31% to RM35.22 million from RM26.89 million.

At Tuesday’s market close, Tex Cycle’s shares were unchanged at RM1.01, valuing the waste recycling firm at RM284 million. Year to date, the counter has depreciated over 9%.