Lum Chang H1 earnings surge to S$7.3 million despite lower revenue

[SINGAPORE] Lum Chang on Thursday (Feb 12) announced a net profit of S$7.3 million for the first half ended Dec 31, 2025, up 108 per cent from S$3.5 million in the previous corresponding period.

Earnings per share stood at S$0.0194 for the recorded period, an increase from S$0.0093 in H1 FY2025.

Improvements in the bottom line came despite revenue slipping 8 per cent to S$220.6 million in H1 FY2026, from S$239 million in the year-ago period.

The decline in revenue was due to lower contributions from its construction segment, which logged sales of S$154.4 million in H1, down 19 per cent from the previous year.

Meanwhile, its restoration and interior fit-out segment observed revenue growth of 38 per cent to S$51.6 million in H1, from S$37.3 million previously. In the first-half period, the group secured S$63.4 million worth of new restoration and interior fit-out projects. This brought its outstanding value of construction and restoration and interior fit-out projects in progress to S$981 million as at Dec 31.

The property segment reported a 53 per cent increase in revenue to S$14.1 million in H1, from S$9.2 million previously.

Lum Chang’s board has proposed an interim dividend of S$0.005 per share, as well as a special dividend of S$0.015 per share, in view of the listing of its subsidiary Lum Chang Creations.

Both dividends will be paid on Mar 16, after the record date on Mar 6.

Looking ahead, the group expects operational challenges to persist, including elevated construction costs, tighter manpower availability, and margin pressures arising from competitive tendering.

Still, Lum Chang said that it will continue to focus on disciplined cost management, timely project execution, and productivity improvements across ongoing works, while selectively pursuing new project opportunities.

Shares of Lum Chang closed Thursday 1.4 per cent or S$0.01 lower at S$0.71, before the release of its results.