Hubline’s revenue for Q3 2025 experienced a significant dip, falling by RM 7.37 million or 14.4% to RM 43.83 million compared to RM 51.20 million in the same quarter last year. This quarter also saw a shift from a pre-tax profit of RM 481 ‘000 in Q3 2024 to a loss before taxation of RM (920) ‘000. Consequently, the loss attributable to shareholders widened substantially by 279.2%, from RM (336) ‘000 to RM (1,274) ‘000, translating to a basic loss per share of -0.03 sen, up from -0.01 sen previously.

The year-to-date figures mirror the quarterly trend, showing a decline in overall performance. Cumulative revenue decreased by RM 27.35 million or 17.5% to RM 128.61 million. The cumulative loss before taxation expanded dramatically by 1500%, from RM (347) ‘000 to RM (5,548) ‘000. The loss attributable to shareholders saw a substantial increase of 1034.3%, reaching RM (5,218) ‘000, resulting in a year-to-date basic loss per share of -0.12 sen.

The Shipping segment’s revenue dropped by 27.0% (RM 9.18 million) due to fewer vessel sets in circulation, lower freight rates, and unfavourable foreign exchange conversion of USD freight income to MYR. Conversely, the Aviation segment saw a robust 10.5% increase in revenue (RM 1.80 million), driven by heightened activities in flying doctor services, calibrations, and aviation maintenance contracts, despite lower course fees from the flying academy.

Reflecting the revenue trend, the Shipping segment’s operating profit fell by 28.6% (RM 1.75 million). However, the Aviation segment’s operating profit surged by an impressive 169.2% (RM 2.02 million), propelled by increased revenue and improved profit margins. Despite the decline in shipping, the group’s overall operating profit actually increased slightly by RM 272 ‘000 or 3.7%, thanks to the strong performance of the Aviation division.

Total assets increased by 7.3% to RM 381.65 million, largely driven by an increase in property, plant and equipment, and right-of-use assets. However, total equity saw a 3.4% decline to RM 186.57 million, while total liabilities increased significantly by 19.9% to RM 195.07 million. This shift led to a decrease in net assets per share from RM 0.045 to RM 0.043. Total borrowings also rose by 19.0% compared to the same period last year, reaching RM 105.73 million, with an average interest rate of 7.01% per annum.

Net cash generated from operating activities saw a modest decline of 9.7% to RM 11.44 million. A significant increase in cash used in investing activities, up 235.7% to RM (40.10) million, was primarily due to higher purchases of property, plant, equipment, and right-of-use assets. Notably, the group shifted from using cash in financing activities (RM (7.61) million) to generating cash of RM 8.12 million from financing, mainly from proceeds from bank borrowings. The cash and cash equivalents position at the end of the period swung from a positive RM 12.39 million to an overdraft of RM (5.48) million.

The logistics sector, where Hubline’s shipping segment operates, is currently facing significant challenges due to global economic uncertainties, fostering market apprehension. Despite these headwinds, Hubline is committed to restoring positive momentum. Their strategy revolves around maintaining high vessel utilization and operational efficiencies within their current fleet. This focused approach aims to maximize performance in areas they can control, positioning the segment to capture market share once broader economic conditions improve.

The general aviation segment continues to be a strong performer, securing new aviation charter and maintenance contracts, which reflects healthy demand and operational growth. This positive momentum is a key highlight for the group. However, the flying academy segment faces ongoing challenges in attracting new student intake. In response, management is dedicated to improving overall operational efficiency across the aviation division and expanding its revenue base to enhance profitability, particularly by addressing the flying academy’s specific challenges.