The company's profitability remains constrained by a narrow 6.2% gross margin, reflecting its position as a price-taker in a highly competitive, labor-intensive industry.
| Sales/Revenue | 3.26M | 46.01M | 48.82M | 44.56M |
| Revenue Growth % | - | -5.76% | 9.58% | - |
| Cost of Goods Sold | 3.06M | 43.09M | 45.93M | 43.33M |
| COGS % of Revenue | - | 93.66% | 94.07% | 97.26% |
| Gross Profit | 201.58K | 2.92M | 2.89M | 1.22M |
| Gross Margin % | 6.17% | 6.35% | 5.93% | 2.74% |
| Gross Profit Growth % | - | 0.89% | 136.68% | - |
| Operating Expenses | 69.3K | 1.37M | 1.24M | 366.32K |
| OpEx % of Revenue | - | 2.97% | 2.54% | 0.82% |
| Selling, General & Admin | 69.3K | 1.36M | 1.04M | 785.24K |
| SG&A % of Revenue | - | 2.96% | 2.13% | 1.76% |
| Research & Development | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - |
| Other Operating Expenses | 0 | 5.32K | 197.53K | -418.92K |
| Operating Income | 132.28K | 1.55M | 1.66M | 856.23K |
| Operating Margin % | 4.05% | 3.38% | 3.39% | 1.92% |
| Operating Income Growth % | - | -6.15% | 93.38% | - |
| EBITDA | 190.01K | 2.36M | 2.78M | 1.92M |
| EBITDA Margin % | 5.82% | 5.12% | 5.69% | 4.32% |
| EBITDA Growth % | - | -15.17% | 44.33% | - |
| D&A (Non-Cash Add-back) | 57.73K | 802.93K | 1.12M | 1.07M |
| EBIT | 136.78K | 1.79M | 1.85M | 1.47M |
| Net Interest Income | -57.75K | -891.38K | -733.22K | -354.13K |
| Interest Income | 0 | 0 | 0 | 0 |
| Interest Expense | 57.75K | 891.38K | 733.22K | 354.13K |
| Other Income/Expense | -53.24K | -647.17K | -575.11K | 38.21K |
| Pretax Income | 79.04K | 906.77K | 1.08M | 894.43K |
| Pretax Margin % | 2.42% | 1.97% | 2.21% | 2.01% |
| Income Tax | 11.12K | 179.32K | 150.73K | 14.88K |
| Effective Tax Rate % | 14.07% | 19.78% | 13.95% | 1.66% |
| Net Income | 67.87K | 727.45K | 929.91K | 879.55K |
| Net Margin % | 2.08% | 1.58% | 1.9% | 1.97% |
| Net Income Growth % | - | -21.77% | 5.73% | - |
| Net Income (Continuing) | 67.92K | 727.45K | 929.91K | 879.55K |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | - | 0.00 | 0.03 | 0.03 |
| EPS Growth % | - | -100% | 5.8% | - |
| EPS (Basic) | - | 0.00 | 0.03 | 0.03 |
| Diluted Shares Outstanding | 30.23M | 0 | 30.11M | 30M |
| Basic Shares Outstanding | 30.23M | 0 | 30.11M | 30M |
| Dividend Payout Ratio | - | - | - | - |
Liquidity and project concentration
As reported in recent financial filings, SKBL's revenue trajectory reflects a -5.76% year-over-year decline, highlighting the inherent volatility of a project-based model that relies heavily on the timing of government infrastructure awards within the highly competitive Hong Kong civil engineering and public works sector.
The revenue decline suggests that the company is struggling to replenish its order book with projects of comparable scale to those recently completed. Given the reliance on government procurement cycles, this contraction may indicate a temporary lull in municipal spending or an inability to secure new tenders in a crowded market.
Based on the latest quarterly data, SKBL operates with a gross margin of 6.34%, which underscores the firm's position as a price-taker in a low-barrier, labor-intensive industry where competitive bidding pressures leave almost no room for operational errors or unexpected cost escalations on site.
The 4.1% operating margin suggests that the company lacks the scale or proprietary technical advantages required to command premium pricing. Investors should monitor whether these thin margins can withstand potential inflationary pressures on labor and materials, as any minor disruption could quickly erode the firm's profitability.
According to the company's income statement, the cost structure is dominated by direct project expenses, leaving minimal overhead capacity and indicating that management's expense discipline is primarily focused on managing subcontracting fees and raw material inputs to preserve the firm's narrow 2.1% net profit margin.
The absence of R&D spending confirms that the company is not investing in high-value engineering solutions, but rather focusing on execution-heavy municipal works. This cost profile makes the firm highly sensitive to fluctuations in the Hong Kong construction labor market and commodity price volatility.
With cash and equivalents reported at only $718,625 against $46M in annual revenue, the company's financial position appears vulnerable to payment delays from government clients, which could create a significant liquidity crunch if progress payments do not align with the timing of project-related cash outflows.
The reliance on the percentage-of-completion accounting method may mask underlying cash flow issues, as revenue is recognized before actual cash is collected. This creates a risk that the company's reported earnings are not fully supported by liquid assets, warranting caution regarding the quality of its receivables.
Quick answers to the most common questions about buying SKBL stock.
For fiscal year 2025, Skyline Builders Group Holding Limited (SKBL) reported total revenue of $46.0M. This represents a 3.3% increase compared to $44.6M in 2023.
Skyline Builders Group Holding Limited (SKBL) is profitable, generating $0.7M in net income for the fiscal year ending 2025 with a net profit margin of 1.6%.
Skyline Builders Group Holding Limited (SKBL) reported an operating income of $1.6M, resulting in an operating profit margin of 3.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Skyline Builders Group Holding Limited (SKBL) generated $2.9M in gross profit for the year, representing a gross profit margin of 6.3%. This demonstrates the company's core pricing power and production efficiency.