KUALA LUMPUR (Nov 19): Taliworks Corp Bhd’s (KL:TALIWRK) net profit for the third quarter ended Sept 30, 2025 (3QFY2025) surged 85.6% year-on-year (y-o-y) to RM45.02 million, supported by a substantial one-off gain from its associate and improved segmental performance.

The profit increase was mainly due to a RM27.12 million share of profit from associate SWM Environment Holdings Sdn Bhd (SWMEH), which recognised a one-off net reversal of receivables provision of RM112.69 million.

The surge in net profit was achieved despite its revenue declining 29.8% y-o-y to RM110.85 million, mostly due to a significant decline in the toll highway segment and a slight reduction in the water treatment and supply segment. In contrast, the construction segment posted higher revenue, while the renewable energy segment remained broadly unchanged.

Earnings per share (EPS) rose to 2.23 sen from 1.2 sen in 3QFY2024, while operating profit fell 61% to RM27.69 million from RM70.35 million previously, the group's bourse filing on Wednesday showed.

The board declared a third interim single-tier dividend of half a sen per share, amounting to RM10.08 million, payable on Dec 24. This brings year-to-date payout to 1.5 sen per share, compared with four sen per share in the previous year's corresponding period.

For the nine-month period ended Sept 30, 2025 (9MFY2025), net profit dropped 22.6% y-o-y to RM68.98 million from RM56.26 million, while revenue declined 6% to RM329.39 million from RM350.3 million.

The toll highway segment suffered from the absence of RM55.28 million in government compensation booked last year, while construction revenue rose 40% on continued progress of the Rasau Projects.

The renewable energy division returned to the black on higher energy output and absence of one-off write-offs seen last year, while water treatment revenue remained stable with slightly higher metered sales.

Taliworks said it is cautiously optimistic on growth across its core water, construction and renewable energy businesses, and remains active in pursuing infrastructure project tenders.

"The group continues to explore value accretive projects to expand its footprint in the water treatment and supply, construction and renewable energy segments," Taliworks executive director Kevin Chin said in a separate statement.

"For its construction business, Taliworks is actively participating in tenders for infrastructure-related projects to boost its order book," he added.

Shares of Taliworks closed unchanged at 52 sen on Wednesday, valuing the company at RM1.05 billion. The stock has fallen more than 33% year to date.

Read also:
Higher share of losses from associate shaves Taliworks’ net profit by one-fifth; 0.5 sen dividend declared