KUALA LUMPUR (Nov 26): UEM Edgenta Bhd (KL:EDGENTA) slipped back into the red for the third quarter ended Sept 30, 2025 (3QFY2025), following significant one-off, non-cash impairments of goodwill, non-current assets and long-outstanding receivables.
The group posted a net loss of RM94.12 million for the quarter, compared with a net profit of RM10.23 million in the previous year’s corresponding quarter, according to its filing with Bursa Malaysia on Wednesday.
This marks its worst quarterly result, as the impairments totalled RM96.4 million, comprising RM26.98 million in goodwill and RM69.41 million in other non-current assets.
UEM Edgenta is 69.14% owned by UEM Group Bhd, a unit of Khazanah Nasional Bhd.
The group's quarterly revenue declined 2.8% to RM770.78 million, from RM793.19 million in 3QFY2024, due to lower contributions from the infrastructure services and healthcare solutions segments.
By segment, asset management reported RM488.89 million in revenue, marginally down from RM492.64 million in 3QFY2024, while infrastructure solutions posted RM279.42 million, down 6.5%.
Loss per share stood at 11.32 sen in 3QFY2025, compared with an earnings per share of 1.23 sen a year earlier.
Gross margin for the quarter narrowed to 11.47% from 12.43% previously, while operating margin turned sharply negative due to the impairment-related charges. Operating expenses surged 124% to RM174.57 million.
No interim dividend was declared for the quarter.
For the nine-month period ended Sept 30, UEM Edgenta registered a net loss of RM102.47 million versus a net profit of RM32.56 million in the same period last year. Cumulative revenue decreased 3.7% to RM2.15 billion from RM2.23 billion.
Managing director and chief executive officer Shaiful Subhan described the third quarter as a "necessary structural reset" as the group transitions between concession cycles. He stressed that the impairments were non-cash balance-sheet adjustments and that the group’s operational capacity and liquidity remain intact.
“Our fundamentals remain robust, supported by our diversified growth in international markets,” Shaiful said in a statement, pointing to high contract renewal rates in Singapore and Taiwan and recent strategic partnerships in Saudi Arabia and the UAE.
"Leveraging this geographical diversification, we are intensifying our technology deployment through our proprietary Asseto system and other IoT-driven solutions. These digital offerings are critical not just for service differentiation, but for enabling the predictive maintenance and real-time performance visibility necessary to drive the cost optimisation and operational efficiency we need in this current climate," he added.
Looking ahead, UEM Edgenta expects improved momentum in the final quarter of the year, supported by new contract wins in infrastructure and facilities management, including traffic management planning and control services on the Kuala Lumpur–Karak Highway.
Besides that, UEM Edgenta said it expanded its property and facility solutions in domestic portfolios with nationwide mobilisation efforts underway after the recent signing of the integrated facilities management contract in the oil and gas and manufacturing sectors.
"These wins mark a strategic broadening of our footprint beyond commercial assets into more complex, multi-site industrial and corporate environments," it added.
Shares of UEM Edgenta closed up 2.5 sen or 2.84% at 90.5 sen on Wednesday, giving the group a market capitalisation of RM752.6 million. The stock has gained 11.7% year to date.