Pakistan Engineering Company (PECO) Reports FY2025 Results Amid Ongoing Operational Challenges

Pakistan Engineering Company Limited (PECO) has announced its audited financial results for the year ended June 30, 2025, highlighting continued operational challenges while demonstrating efforts to stabilize the company’s long-term position. The financial results were approved by the Board of Directors during a meeting held on June 6, 2026.

According to the announcement, the company did not declare any cash dividend, bonus shares, or right shares for the financial year. PECO also confirmed that there were no other corporate actions or price-sensitive developments to report.

Financial Performance

PECO recorded sales revenue of Rs. 26.7 million during FY2025, compared to Rs. 23.3 million in the previous year. Despite the increase in revenue, the company continued to face significant cost pressures, resulting in a gross loss of Rs. 27.6 million.

The company’s operating loss improved to Rs. 69.5 million from Rs. 82.7 million reported in FY2024. After accounting for taxation benefits, the net loss after tax stood at Rs. 63.8 million, an improvement from the previous year’s loss of Rs. 75.3 million.

Basic and diluted loss per share improved to Rs. 11.21 compared with Rs. 13.23 in the preceding year.

Financial Position

As of June 30, 2025, PECO reported total assets of approximately Rs. 39.6 billion. The majority of these assets consisted of property, plant, and equipment valued at Rs. 39.1 billion. Current assets totaled Rs. 242.3 million, while cash and bank balances stood at Rs. 7.4 million.

Total equity amounted to Rs. 36.9 billion, supported primarily by the revaluation surplus of fixed assets. Accumulated losses increased to Rs. 2.2 billion, reflecting the company’s continued operational difficulties.

Current liabilities increased slightly to Rs. 785.6 million, while non-current liabilities decreased to Rs. 117.2 million.

Cash Flow Highlights

PECO reported a net cash outflow from operating activities of Rs. 2.1 million during FY2025. Investment activities consumed an additional Rs. 23,000, primarily related to capital expenditure. As a result, cash and cash equivalents declined from Rs. 9.5 million at the beginning of the year to Rs. 7.4 million at year-end.

Management Outlook

The company noted that its management continues to address issues and impediments inherited from previous administrations. PECO emphasized its commitment to stabilizing operations, improving compliance, and strengthening its financial position.

The external auditors issued a disclaimer of opinion on the financial statements, and the detailed audit report will be circulated with the company’s annual report.

PECO has also announced that its Annual General Meeting (AGM) will be held on July 2, 2026, in Lahore. Share transfer books will remain closed from June 26, 2026, to July 2, 2026, both days inclusive.

While the company remains under financial pressure, the reduction in annual losses and continued focus on operational stabilization indicate management’s efforts to improve PECO’s future performance and governance framework.