Hock Lian Seng explains FY2026 interim miss after project costs rise, claims talks stall
Reuters2026/08/05 09:23- Hock Lian Seng issued a clarification on why guidance given in April and May diverged from its 1H ended June 30, 2026 results.
- Earlier guidance pointed to civil engineering revenue comparable to FY2025, with management stating all ongoing projects remained profitable.
- The group cited higher-than-anticipated costs tied to design enhancements, enabling works, inflation, transport, subcontractors, steel, concrete, manpower.
- Claims discussions with project owners stayed inconclusive by early July, prompting a contract margin cut and an onerous contract provision.
- Aviation Park Station was about 70% complete; Serangoon North Station about 46%; price fluctuation clauses did not fully offset added scope costs.
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