Avanceon Limited: performance and outlook

Business Recorder reported that Avanceon Limited (PSX: AVN) posted a topline of Rs3101.47 million for 2025, a 0.04 per cent dip from the previous year. The publisher linked the slight decline to a high base, as the company had received many high-margin orders in 2024. Net profit, however, fell 88.84 per cent to Rs60.181 million, translating into EPS of Rs0.142 and a net profit margin of 1.94 per cent.

Cost of sales rose 11.48 per cent amid inflationary pressure, pulling gross margin down to 24.66 per cent, the lowest in the period reviewed. Other expenses jumped 71.95 per cent on provisions for credit losses on certain projects. Operating profit eroded 60.71 per cent, leaving an OP margin of 9.65 per cent, while finance cost eased 8.38 per cent.

In the first quarter of calendar year 2026, topline climbed 62.30 per cent to Rs686.67 million, which the report attributed to planned project execution and revenue recognition on projects assumed earlier. Net profit rose 44.46 per cent to Rs64.546 million, yet gross margin slipped to 29.84 per cent as direct costs increased with Middle East geopolitical tensions. The company also obtained an order worth USD 6.3 million from one of Pakistan's largest oil companies for its fuel retail business.