KUALA LUMPUR (Nov 25): Greatech Technology Bhd (KL:GREATEC) has flagged near-term headwinds, pointing to more challenging market conditions as tariffs and other complexities continue to cloud customer decision-making, particularly across the US.

This comes as the group reported a 17.4% decline in net profit to RM18.97 million for the third quarter ended Sept 30, 2025 (3QFY2025), against RM22.95 million a year earlier, due to lower product margins and higher staff costs.

Greatech cautioned that there could be delays in investment decisions by clients, but stressed that it is proactively managing market fluidity through strategic local sourcing, cost optimisation and operational discipline.

Gross profit margin in 3QFY2025 narrowed to 25.29% from 34.84% in 3QFY2024, as the preceding quarter benefitted from revenue recognition tied to the completion of key project installation milestones, which typically carry higher margins.

Employee compensation and benefits rose to RM8.04 million during the quarter, reflecting increased headcount from both organic expansion and strategic acquisitions. These pressures were partly offset by a favourable foreign exchange variance of RM24.7 million compared with 3QFY2024, the group added.

Quarterly revenue edged up 2% to RM192.63 million from RM188.79 million, driven mainly by higher recognition from production line systems in the e-mobility segment and single automated equipment for the semiconductor sector.

No dividend was declared for the quarter.

For the nine months ended Sept 30, net profit fell 20.9% to RM81.82 million from RM103.37 million, while revenue rose 9.9% to RM600.75 million from RM546.54 million a year earlier.

Despite near-term challenges, Greatech said it continues to operate in a healthy demand environment, supported by a stable order book and sustained investments in key growth sectors. As of Nov 19, the group’s outstanding order book stood at RM697.91 million, providing visibility until the first half of 2027.

The group remains upbeat on its outlook, citing structural growth opportunities in electric-vehicle manufacturing, solar energy and life sciences.

It added that the ongoing localisation of clean-energy supply chains, particularly in the US, further enhances the strategic relevance of Malaysian equipment suppliers within global ecosystems.

Shares in Greatech closed down one sen or 0.6% to RM1.79, valuing the group at RM4.5 billion. Year to date, the stock has declined 22.5%.