UEM EDGENTA BERHAD Integrated Annual Report 2025 38 CFO’S STATEMENT SEGMENTAL HIGHLIGHTS Healthcare Solutions Healthcare Solutions generated revenue of RM1,587.5 million in FY2025, 1.5% below the prior year. The decline was driven mainly by the termination of a contract in Malaysia and the translation effect of a stronger Malaysian Ringgit on contributions from Singapore and Taiwan, which moderated the benefit of high renewal rates and new contract wins across both markets. The segment recorded a net loss of RM68.1 million, compared with a net profit of RM58.0 million in FY2024. This reflected sustained margin pressure from higher regulatory compliance costs, particularly minimum wage-related increases across Malaysia, Singapore and Taiwan. In a number of existing contracts, the recovery of these additional costs remained limited, resulting in lower forward margin expectations and contributing to impairments in goodwill and other non-current assets recognised during the year. Notwithstanding the financial outcome, we maintained our full presence across all 10 restructured government hospitals in Singapore and continued to support more than 80 healthcare institutions in Taiwan. The priority now is to improve margin recovery through contract repricing, stronger cost pass-through mechanisms and operational efficiency measures, in line with our broader focus on improving earnings quality. Infrastructure Services Infrastructure Services’ revenue of RM852.5 million in FY2025 was 12.6% below the prior year, reflecting reduced work orders for highway and road maintenance activities and the timing of work programmes under existing contracts. The segment recorded a net loss of RM30.0 million, compared with a net profit of RM42.2 million in FY2024. Profitability was affected by lower revenue, which reduced operating leverage, margin pressure on ongoing contracts arising from the escalation of contract costs, and impairment of receivables recognised during the year. The segment also recorded an adjustment following a comprehensive review of deferred cost positions, as part as ongoing efforts to ensure carrying values remain appropriate and reflective of current contract performance and cost expectations. Our long-term concession arrangements continue to provide continuity within our portfolio, and the discipline applied to cost management and contract execution in this segment supports our broader working capital and cash generation objectives. Property and Facility Solutions Property and Facility Solutions grew its revenue by 0.8% to RM342.7 million in FY2025. Growth was driven primarily by new contracts in Saudi Arabia and the UAE, partially offset by project completions and timing differences of the replacement projects in Malaysia. During the year, we secured integrated facilities management contracts in new verticals, representing our entry into more complex, multi-site industrial environments. Revenue contribution was limited in FY2025 as mobilisation commenced progressively from the second half of the year, with associated start-up costs incurred ahead of revenue coming through. The segment recorded a net loss of RM23.3 million, compared with a net profit of RM4.8 million in FY2024, reflecting mobilisation costs on newly secured contracts, increased operational requirements from certain clients and impairment of long-outstanding receivables. As these contracts move towards steadier operating levels through FY2026, their revenue contribution and profitability is expected to build progressively. Our presence in industrial and corporate environments, supported by our technology-led differentiation, also opens access to higher-value scopes of work that should support margin growth moving forward. We will continue translating operational opportunities into sustainable financial outcomes for our stakeholders.
RkJQdWJsaXNoZXIy NDgzMzc=