EVD Berhad’s Latest Quarter: Revenue Soars, But Profitability Remains Elusive
EVD Berhad, a key player in engineering solutions, has just released its financial results for the fourth quarter ending June 30, 2025. The report reveals a significant surge in revenue, driven by strong performance in one of its core segments. However, the bottom line tells a different story, as the company continues to navigate market headwinds and operational costs. Let’s dive deep into the numbers and what they mean for the company’s path forward.
A key highlight from this quarter is the impressive 98% jump in revenue compared to the immediate preceding quarter, showcasing strong project execution. Despite this growth, the company recorded a loss before tax of RM1.40 million for the quarter.
Core Financial Performance: A Tale of Two Metrics
When we look at the quarter-on-quarter performance, the growth in the top line is immediately apparent. This surge indicates a healthy pipeline and the company’s ability to deliver on its projects. However, profitability has not yet followed suit, with losses widening slightly.
Q4 FY2025 (Current Quarter)
Revenue: RM 17.36 million
Loss Before Tax: (RM 1.40 million)
Q3 FY2025 (Preceding Quarter)
Revenue: RM 8.78 million
Loss Before Tax: (RM 1.34 million)
For the full 12-month period ending June 30, 2025, the Group registered a total revenue of RM36.71 million and a cumulative loss before tax of RM7.46 million. It’s important to note that due to a change in the company’s financial year-end to December 31, direct year-on-year comparisons are not available in this report.
Breaking Down the Revenue Streams
The company’s diverse operations contribute differently to its overall revenue. The Extra Low Voltage (ELV) Integrated Solution segment was the star performer, accounting for the majority of the Group’s income over the past 12 months. This segment, which includes smart building and security services, was the primary driver behind the quarter’s revenue increase.
| Business Segment | Revenue (RM’000) | Percentage of Total |
|---|---|---|
| Extra Low Voltage Integrated Solution | 28,641 | ~78% |
| Transportation | 5,536 | ~15% |
| Healthcare | 1,119 | ~3% |
| Others (incl. Other Engineering Services) | 1,418 | ~4% |
| Total | 36,714 | 100% |
Risks and Future Prospects
Every investment landscape has its opportunities and challenges. For EVD Berhad, the future holds promise, backed by national strategic initiatives, but is also clouded by legal hurdles that require careful navigation.
A Promising Outlook
The Group is well-positioned to capitalize on several key industry trends in Malaysia:
- Transportation Sector Growth: The Malaysian government’s focus on expanding the nation’s transit system, including major projects like the East Coast Rail Link (ECRL) and Pan Borneo Highway, presents significant opportunities for EVD’s transportation system solutions.
- Healthcare Digitalization: The ongoing digital transformation in the Malaysian healthcare system to improve efficiency and patient care aligns perfectly with EVD’s ICT expertise, opening doors for its healthcare segment.
- Strategic Focus on ICT: The company is actively refining its ICT system solutions to meet the evolving demands of both the transportation and healthcare sectors, aiming for long-term sustainability.
Navigating Legal Headwinds
The company is currently managing several material litigations which are a significant risk factor. These include a civil suit from a sub-contractor, North Line Eng (M) Sdn Bhd, claiming approximately RM600k. More critically, a Winding Up Petition was filed against its subsidiary, EVD Engineering Sdn Bhd, by Yee Cheng Construction Sdn Bhd over an outstanding balance of RM367k. While a separate suit by Thales was recently discontinued, these ongoing legal matters could have financial and operational implications.
Shareholder Returns
For the current financial quarter under review, the Board of Directors has not recommended any dividend. This is common for companies that are in a growth phase or are currently unprofitable, as they typically reinvest earnings back into the business or conserve cash.
Summary and Outlook
EVD Berhad’s latest report paints a picture of a company in transition. The substantial quarter-on-quarter revenue growth is a strong positive signal, demonstrating its capability in project execution, especially within the ELV Integrated Solution segment. However, the persistent losses highlight the ongoing challenge of converting top-line growth into bottom-line profitability.
Looking ahead, the strategic alignment with national infrastructure and digitalization projects provides a clear runway for future growth. The key for EVD will be to manage its operational costs effectively and navigate the legal challenges it currently faces. These legal issues represent the most immediate risk and could impact investor sentiment until they are resolved.
- Key Positive: Strong revenue growth momentum, particularly from the ELV Integrated Solution projects.
- Key Challenge: Achieving profitability remains the primary hurdle for the company.
- Key Risk to Monitor: The outcomes of the ongoing material litigations, especially the winding-up petition, are critical.
