LEON FUAT BERHAD (“Leon Fuat” or the “Group”), a manufacturer and trader of steel products specialising in rolled long and flat steel, reported its financial results for the fourth quarter ended 31 December 2025 (“Q4 FY2025”), closing the financial year with stronger overall profitability despite softer revenue in the final quarter.
For Q4 FY2025, the Group recorded revenue of RM217.81 million compared to RM246.04 million in the corresponding quarter last year, representing a decrease of 11.5%. The lower revenue was mainly attributable to reduced tonnage sales and softer average selling prices across selected trading of flat steel products and processed steel categories.
Despite the decline in revenue, gross profit improved by 28.9% to RM18.81 million from RM14.59 million in Q4 FY2024, supported by a slight improvement in gross margin to 8.0% and a net reversal of inventories written down during the quarter. The Group recorded a profit before tax (“PBT”) of RM0.59 million compared to a loss before tax of RM5.31 million previously. Loss after tax (“LAT”) narrowed significantly to RM0.13 million from RM4.88 million in the preceding year corresponding quarter.
In comparison with the immediate preceding quarter, revenue declined 12.2% from RM248.12 million to RM217.81 million, primarily due to lower trading and processing volumes. Gross profit decreased from RM24.71 million to RM18.81 million, reflecting softer margins quarter-on-quarter. Consequently, PBT moderated to RM0.59 million from RM6.50 million in Q3 FY2025.
On a full-year basis, Leon Fuat delivered improved earnings for FY2025. Revenue stood at RM907.29 million compared to RM928.74 million in financial year ended 31 December 2024 (“FY2024”). Gross profit increased 7.4% to RM87.17 million, driven by improved overall margins and lower inventories written down during the year. Full-year PBT rose 40.4% to RM15.61 million from RM11.12 million in FY2024, while profit after tax (“PAT”) grew 53.0% to RM11.46 million compared to RM7.49 million previously. Earnings per share strengthened to 3.36 sen from 2.21 sen in the prior year, reflecting the Group’s stronger profitability trajectory.
Calvin Ooi Shang How, Executive Director of Leon Fuat commented, “While the fourth quarter was impacted by softer steel prices and lower trading volumes, the Group remained operationally disciplined and successfully closed FY2025 with significantly improved profitability. The full-year performance reflects better margin management, prudent inventory strategies and the resilience of our diversified customer base.”
He added, “We will continue to enhance our integrated trading, processing and downstream manufacturing capabilities, including optimising utilisation of our fibre laser cutting and welded steel pipe production facilities, to strengthen value capture and operational efficiency.”
Looking ahead, the Group remains cautiously optimistic. Although global uncertainties such as steel price volatility, foreign exchange fluctuations and geopolitical developments persist, domestic demand supported by infrastructure activity, manufacturing expansion and sustained investment flows is expected to underpin steel consumption. Leon Fuat will continue to monitor market developments closely while maintaining prudent cost control and inventory management strategies. The Board anticipates that the Group will be able to generate positive results in FY2026, in line with its strengthened operational foundation.
As at 27 February 2026, the share price of Leon Fuat is RM0.37, representing a market capitalisation of RM126.20 million.
