Press Metal Q2 2025: Navigating Headwinds with Solid Growth and Rewarding Shareholders
Press Metal Aluminium Holdings Berhad, Southeast Asia’s largest aluminium smelter, has just released its financial results for the second quarter ended June 30, 2025. The report reveals a story of resilience and strategic navigation. While revenue continues its upward trajectory driven by strong sales, profitability faced some pressure from higher costs. The standout news for investors? The company has declared a second interim dividend, reinforcing its commitment to shareholder returns.
Core Data Highlights: A Closer Look at the Numbers
Revenue Climbs Amidst Market Challenges
Press Metal posted a commendable performance on its top line. For the second quarter of 2025, the company’s revenue saw a healthy increase compared to the same period last year, primarily fueled by higher sales volume. This indicates sustained demand for its products despite a cautious global economic environment.
Q2 2025 Revenue
RM 4.19 billion
Q2 2024 Revenue
RM 3.95 billion
This represents a year-on-year revenue growth of 6%.
Profitability Faces Short-Term Pressure
While revenue grew, the bottom line tells a slightly different story. The profit after tax and minority interests (PATAMI) saw a mild decline. The company attributes this to drawing down inventory purchased at previously higher prices, leading to increased raw material costs for the quarter. Additionally, lower contributions from associate companies and higher taxation also impacted the net profit.
Q2 2025 Net Profit (PATAMI)
RM 483.6 million
Q2 2024 Net Profit (PATAMI)
RM 505.8 million
This translates to a slight 4% dip in net profit for the quarter, with earnings per share (EPS) at 5.87 sen compared to 6.14 sen in the corresponding quarter last year.
The Bigger Picture: A Strong First Half Performance
Looking at the cumulative performance for the first six months of 2025, the growth story remains intact. Both revenue and net profit are up, showcasing the company’s solid footing over the medium term.
| Financial Metric (6M) | FY2025 | FY2024 | Change |
|---|---|---|---|
| Revenue | RM 8.09 billion | RM 7.57 billion | +7% |
| Net Profit (PATAMI) | RM 945.3 million | RM 913.9 million | +3% |
| Earnings Per Share (sen) | 11.47 | 11.09 | +3.4% |
A Welcome Return for Shareholders
In a move that will surely be welcomed by investors, Press Metal’s board has declared a second interim dividend for the fiscal year.
A second interim dividend of 2.0 sen per share has been announced, payable on 29 September 2025.
Risk and Prospect Analysis: The Road Ahead
The management, led by Group CEO Tan Sri Paul Koon, provided a candid view of the current market landscape. While acknowledging the challenges, they also highlighted significant opportunities on the horizon.
Navigating Global Uncertainties
The market sentiment remains cautious due to ongoing macroeconomic uncertainties and trade tensions, particularly concerning US tariff structures. This has led some manufacturers to adopt a wait-and-see approach to purchasing. However, the report notes that global aluminium supply constraints and geopolitical risks are helping to support metal prices, which is a positive for Press Metal.
Future-Proofing with High-Growth Sectors
The company is optimistic about future demand, especially from emerging and sustainable industries. Aluminium’s unique properties—lightweight, corrosion-resistant, and an excellent conductor—make it indispensable for high-growth sectors. The management specifically pointed to renewable energy applications, artificial intelligence (AI) infrastructure, and data centres as key future demand drivers. Potential US interest rate cuts and government stimulus packages globally could further boost economic activity and, consequently, demand for aluminium.
Summary and Investment Recommendations
Press Metal’s Q2 2025 results reflect a resilient company navigating a complex global market. The strong revenue growth demonstrates robust demand, although profitability was temporarily impacted by cost pressures. The positive performance in the first half of the year and the consistent dividend payout underscore the company’s solid operational foundation. This content is for informational purposes only and does not constitute financial or investment advice.
- Sustained Revenue Growth: The 6% YoY revenue increase highlights the company’s ability to drive sales even in a challenging environment.
- Cost Management is Key: The dip in quarterly profit underscores the sensitivity to raw material costs, making cost management a critical factor to watch.
- Supportive Market Dynamics: Global supply constraints are providing a floor for aluminium prices, which benefits producers like Press Metal.
- Positioned for Future Trends: The company is well-aligned with long-term growth trends in renewable energy and technology, which are set to be major demand drivers.
Final Thoughts
From my perspective, Press Metal’s latest report paints a picture of a mature industry leader adeptly managing short-term volatility while keeping its eyes firmly on long-term growth opportunities. The ability to grow sales and reward shareholders amidst global uncertainty speaks to its operational strength.
What are your thoughts on the long-term demand for aluminium from sectors like renewable energy and AI? Do you think Press Metal can effectively capitalize on these trends in the coming years? Share your insights in the comments below!
