Hong Leong Asia has reported earnings of $112.8 million for the FY2025 ended Dec 31, 2025, 28.5% higher y-o-y.
Earnings per share (EPS) also increased by 28.5% y-o-y to 15.08 cents.
The group has proposed a final dividend of 3 cents per share, bringing its total dividend to 5 cents per share for FY2025, 25% higher y-o-y.
Group revenue rose by 22% y-o-y to $5.18 billion mainly due to Yuchai’s revenue growth, underpinned by stronger demand for power generators in the marine and power generation sector, as well as improved precast volumes from Hong Leong Asia’s building materials unit (BMU).
Gross profit rose by 29.6% y-o-y to $947.2 million, while gross margin increased to 18.3% from FY2024’s 17.2%. The increase was mainly attributed to higher sales volume, different sales mix with higher unit sales of heavy-duty and high horsepower engines and continuing cost reduction initiatives for Yuchai.
Yuchai’s revenue grew by 26.3% y-o-y to $4.5 billion. During the year, Yuchai sold 461,309 powertrain units, 29.4% higher y-o-y. Sales for trucks and bus engine units also increased by 42.8% y-o-y, compared to the 4.5% growth in vehicle market sales reported by the China Association of Automobile Manufacturers (CAAM) for FY2025.
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Total truck engine unit sales rose by 50.7% y-o-y compared with a 5.9% y-o-y increase from CAAM data for truck unit sales.
Sales for off-road engine increased by 13% y-o-y. Industrial and marine and genset unit sales grew by over 24% y-o-y, which partly offset the lower agricultural engines unit sales.
During the period, Yuchai’s gross margin improved due to better scale, on-going cost reduction efforts and a change in sales mix with higher sales of heavy-duty and high horsepower powertrains.
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Yuchai’s profit after tax surged by 62.9% y-o-y to $145.9 million.
In Singapore and Malaysia, BMU’s revenue inched up by 0.1% y-o-y to $682.7 million with demand for building materials remaining “strong”.
Earlier in the year, the group saw ready-mixed concrete volume affected by plant capacity adjustments, although this evened out with more contracts secured in the second half of 2025. Both segments — ready-mixed concrete and precast — ended the year with higher order books for FY2025.
Profit after tax for this segment stood at $90.5 million, 4.9% higher y-o-y.
According to Hong Leong Asia, the higher bottom line for the segment was due to better pricing, lower energy inputs and better performance at a key associate. The segment also saw contributions to its overall concrete volumes following efforts to grow Tasek’s footprint in Johor.
Corporate and others reported a 2.5% y-o-y drop in revenue to $21.4 million. The segment also reported a loss after tax of $23.2 million, a slight improvement from its FY2024 loss of $23.5 million.
Looking ahead, the group expects Yuchai’s business to continue to grow despite “mixed” demand in China’s domestic market. This is underpinned by fast-growing demand for more advanced engines from data centre applications and growth in the export market for truck and bus applications.
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Yuchai is also working on research and development (R&D) initiatives to improve its powertrain solutions.
In Singapore, the group expects its BMU arm to see “steady growth” in the precast and ready-mixed concrete segments as it delivers on its order book. The group also believes demand remains strong and sustained, in line with the Building and Construction Authority’s (BCA) projection of $47 billion to $53 billion contracts to be awarded in 2026.
The group says it will continue to invest in new batching plants, automation technologies and grow its new fleet of bigger, 12 and 14 cubic metre concrete mixer trucks to improve operational efficiencies.
The group also expects continued demand growth in its Malaysian BMU business with the country’s continued infrastructure development and growth at the Johor-Singapore Special Economic Zone (JS-SEZ).
According to Hong Leong Asia, Tasek is focused on growing its footprint and improving its operational efficiencies. The business is also looking to increase the use of alternative raw materials and alternative fuels in a bid to become more sustainable.
Overall, the group expects challenges ahead from volatile input costs and disruptions in supply chains to continue. That said, it expects its businesses to deliver “satisfactory results” in 2026.
As at Dec 31, 2025, cash and cash equivalents stood at $1.53 billion.
Unitholders will receive their dividends on May 15.
Shares in Hong Leong Asia closed 35 cents lower or 10.29% down at $3.05 on Feb 25.
