Tak Lee Machinery Holdings Limited reported a strong finish to FY2025 with Q4 2025 revenue of HKD 179.19 million, up 22.1% year-over-year and 136.6% quarter-over-quarter, aided by a seasonal uplift in demand for heavy equipment in Hong Kong. Gross profit was HKD 30.24 million, yielding a gross margin of 16.88%. EBITDA stood at HKD 33.77 million, with an EBITDAR margin of 18.85%, underscoring the business’s ability to generate operating cash flow from core activities despite a high cost base. Net income for the quarter was HKD 14.16 million, or HKD 0.0142 per share, representing a substantial YoY improvement of about 1,094% and a QoQ gain of roughly 102%. The company benefited from better fleet utilization and a favorable product mix, with continued revenue contribution from maintenance and spare parts alongside traditional sales and leasing of heavy equipment.
Key takeaways include: (1) a robust Q4 recharge driven by seasonal activity and fleet utilization, (2) a diversified services mix that supports margin resilience through after-sales revenue, and (3) ongoing cyclicality tied to Hong Kong infrastructure and construction cycles. While management commentary is not publicly captured in the dataset, the quarter’s results imply a favorable near-term operating trajectory, albeit with sensitivity to macro construction activity and funding cycles. Investors should monitor fleet utilization, parts/service revenue growth, and any changes in regulatory or financing conditions that could affect capex cycles in the region.