-- UEM Edgenta Berhad (“UEM Edgenta” or “the Company”), a leading Asset Management and Infrastructure Solutions company, today announced its unaudited financial results for the third quarter ended 30 September 2025 (Q3 FY2025). UEM Edgenta recorded revenue of RM770.8 million, marginally lower than the RM793.2 million reported in the corresponding quarter last year. The Group reported a net loss of RM92.9 million for the quarter, compared to a net profit of RM10.4 million in Q3 FY2024. The reported loss was primarily driven by significant one-off, non-cash impairments of goodwill, non-current assets, and long-outstanding receivables.
The impairment of receivables reflects our measured approach to credit risk management, while the impairments of goodwill and non-current assets were triggered by recent confirmation that the current Healthcare Support Services concession terms would remain unchanged with no upward revision in fees for the interim period, leading to a revaluation of the carrying amounts associated with the concession business. Excluding these one-off adjustments, the Company’s underlying operational profit stood at RM11.7 million which is broadly in line with the profitability levels of our normal operating quarters, demonstrating the effectiveness of our cost-savings measures and process optimisation initiatives in mitigating persistent cost pressures including those arising from the regulatory enforcement of the new minimum wage.
Our Asset Management segment posted revenue of RM489.1 million for the quarter, slightly below the RM492.9 million recorded in Q3 FY2024. While the segment continued to secure new wins in international markets, the financial results was primarily impacted by the structural rebasing of the Healthcare Solutions division following the transition to an interim concession environment, coupled with margin compression arising from the regulatory enforcement of the new minimum wage order. Consequently, the segment recorded a net loss of RM61.5 million, reflecting the non-cash impairments and the immediate flow-through of these operational cost increases which outpaced current contract cost-pass-through mechanisms.
The Infrastructure Solutions segment reported revenue of RM279.4 million for Q3 FY2025, lower than the RM302.4 million recorded in the corresponding quarter last year. The decline was primarily attributable to reduced work orders in the Infrastructure Services division and delays in project commencement within the Asset Consultancy division. This translated into a lower net profit for the segment of RM8.3 million, as margins remained under pressure from escalating operating costs.
Overall, for the nine‐month period ended 30 September 2025 (9M FY2025), the Company reported revenue of RM2.15 billion and a net loss of RM99.5 million, compared to RM2.23 billion in revenue and a net profit of RM33.4 million in the corresponding period. The decline reflects the transitional period the Group is navigating, characterised by the lower translated contributions from foreign subsidiaries, and significant margin pressures arising from the increased operating costs across key segments, especially the Healthcare concession business.
Commenting on the quarter’s results, Shaiful Subhan, Managing Director/Chief Executive Officer, UEM Edgenta, shared, “We view this quarter’s performance as a necessary structural reset as we navigate the transition between concession cycles. It is crucial to highlight that despite the reported loss, the impact stems largely from one-off, non-cash balance-sheet adjustments arising from our reassessment of asset carrying values and credit exposures. These adjustments do not affect our operational capacity or liquidity. Our operating cash flow remains positive, enabling us to sustain disciplined cost management supported by technology-driven operational efficiency. Our fundamentals remain robust, supported by our diversified growth in international markets. We are confident that the strategic measures we are executing today will neutralise these headwinds and return the Group to sustainable profitability in the near term.”
“Our international business remains a vital pillar of our earnings resilience, particularly in Singapore and Taiwan, where we have high contract renewals and new wins continue to affirm our market leadership. In the Middle East, we are accelerating our expansion through strategic partnerships, such as our recent collaboration with Land Sterling in the Kingdom of Saudi Arabia, which opens new opportunities in large-scale facility management. 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.
Across Malaysia, the Company continues to prioritise margin protection and efficiency improvements through disciplined execution of local contracts. The Company expects growth momentum in Infrastructure Solutions to be further supported by contracts secured in early 2025, including traffic management planning and control services on the Kuala Lumpur–Karak Highway. We also expanded our Property and Facility Solutions in domestic portfolios with nationwide mobilisation efforts underway after the recent signing of the IFM contract in the oil & 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.
Through disciplined execution, strengthened capabilities, and a diversified regional footprint, the Company is confident in navigating our organisation’s future and positioning UEM Edgenta for long-term, sustainable value creation for all stakeholders.
Release ID: 89177182
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