Pakistan Engineering Company Limited (PECO) has reported a loss after taxation of Rs31.48 million for the six months ended December 31, 2025, showing an improvement from the Rs37.03 million loss recorded in the corresponding period of the previous year.
According to the company’s financial results submitted to the Pakistan Stock Exchange, PECO’s loss per share also improved to Rs5.53, compared with a loss per share of Rs6.51 in the same period of 2024. The company announced no cash dividend, bonus shares or right shares for the period.
Operating performance remains under pressure
The financial statements show that PECO did not report sales for the six-month period ended December 31, 2025, while the company had recorded sales of Rs26.70 million during the corresponding period last year. As a result, no gross profit was reported for the latest period.
Despite the absence of sales, the company’s operating loss narrowed to Rs26.67 million, compared with Rs33.09 million in the same period of 2024. The improvement was mainly reflected in the lower overall operating expense burden, although administrative expenses increased to Rs27.38 million from Rs21.02 million.
Finance costs remained relatively limited at Rs3,000 during the six-month period, compared with Rs36,000 a year earlier. The company subsequently recorded a pre-tax loss of Rs26.67 million before taxation and a net loss of Rs31.48 million after tax.
Quarterly loss also improves
For the quarter ended December 31, 2025, PECO posted a loss after taxation of Rs12.22 million, compared with Rs13.06 million in the same quarter of 2024.
The quarterly loss per share improved to Rs2.15, from Rs2.29 previously. The company’s operating loss for the quarter stood at Rs13.48 million, compared with Rs14.00 million in the corresponding quarter of the previous year.
Asset base remains substantial
PECO’s financial position remained dominated by its property, plant and equipment, which stood at approximately Rs39.04 billion as of December 31, 2025. Total assets were reported at Rs39.60 billion, broadly in line with Rs39.62 billion at June 30, 2025.
Current assets stood at Rs236.97 million, including cash and bank balances of Rs4.16 million. The company also reported a freehold land balance of Rs314.72 million classified as held for sale.
On the liabilities side, PECO had total current liabilities of approximately Rs766.61 million, while liabilities directly associated with the freehold land held for sale amounted to Rs1.79 billion. The company’s accumulated loss increased to approximately Rs2.23 billion by December 31, 2025.
Cash position declines
The company’s cash flow statement points to continued pressure on operating cash generation. PECO used Rs3.21 million in net cash from operating activities during the six months ended December 31, 2025, compared with net cash generation of Rs8.84 million in the same period of 2024.
As a result, cash and cash equivalents declined from Rs7.37 million at the beginning of the period to Rs4.16 million at December 31, 2025.
Overall, PECO’s latest results show a reduction in the company’s net and operating losses compared with the previous year. However, the absence of reported sales during the six-month period, continued accumulated losses and weaker operating cash flows highlight the challenges facing the engineering company. The results therefore point to the importance of restoring business activity and improving revenue generation for a sustainable turnaround.
