While the company maintains a resilient 25.13% gross margin, the broader income statement reflects a -19.18% operating margin, indicating that project-level execution is currently undermined by excessive corporate overhead.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Sales/Revenue | 12.95M | 11.3M | 9.76M | 9.62M | 11.92M |
| Revenue Growth % | 14.58% | 15.8% | 1.43% | -19.27% | - |
| Cost of Goods Sold | 9.7M | 6.27M | 6.22M | 4.97M | 7.76M |
| COGS % of Revenue | 74.87% | 55.47% | 63.75% | 51.62% | 65.14% |
| Gross Profit | 3.25M | 5.03M | 3.54M | 4.66M | 4.15M |
| Gross Margin % | 25.13% | 44.53% | 36.25% | 48.38% | 34.86% |
| Gross Profit Growth % | -35.33% | 42.23% | -24% | 12.06% | - |
| Operating Expenses | 5.74M | 4.33M | 3.12M | 3.1M | 2.84M |
| OpEx % of Revenue | 44.31% | 38.29% | 31.93% | 32.25% | 23.85% |
| Selling, General & Admin | 5.11M | 2.77M | 1.73M | 1.88M | 1.67M |
| SG&A % of Revenue | 39.48% | 24.54% | 17.76% | 19.57% | 14% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 626K | 1.55M | 1.38M | 1.22M | 1.17M |
| Operating Income | -2.48M | 705K | 422K | 1.55M | 1.31M |
| Operating Margin % | -19.18% | 6.24% | 4.32% | 16.13% | 11.01% |
| Operating Income Growth % | -452.34% | 67.06% | -72.81% | 18.29% | - |
| EBITDA | -899K | 2.18M | 1.72M | 2.75M | 2.47M |
| EBITDA Margin % | -6.94% | 19.29% | 17.67% | 28.6% | 20.7% |
| EBITDA Growth % | -141.24% | 26.45% | -37.35% | 11.55% | - |
| D&A (Non-Cash Add-back) | 1.58M | 1.48M | 1.3M | 1.2M | 1.16M |
| EBIT | -2.33M | 939K | 547K | 2.02M | 1.81M |
| Net Interest Income | -471K | -333K | -215K | -84K | -185K |
| Interest Income | 10K | 1K | 6K | 70K | 3K |
| Interest Expense | 481K | 334K | 221K | 154K | 188K |
| Other Income/Expense | -332K | -100K | -96K | 313K | 313K |
| Pretax Income | -2.82M | 605K | 326K | 1.86M | 1.63M |
| Pretax Margin % | -21.75% | 5.35% | 3.34% | 19.38% | 13.64% |
| Income Tax | 104K | 161K | 128K | 417K | 313K |
| Effective Tax Rate % | -3.69% | 26.61% | 39.26% | 22.36% | 19.26% |
| Net Income | -2.92M | 444K | 198K | 1.45M | 1.31M |
| Net Margin % | -22.55% | 3.93% | 2.03% | 15.05% | 11.01% |
| Net Income Growth % | -757.66% | 124.24% | -86.33% | 10.37% | - |
| Net Income (Continuing) | -2.92M | 444K | 198K | 1.45M | 1.31M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.00 | 0.28 | 0.13 | 0.93 | 0.84 |
| EPS Growth % | -100% | 123.62% | -86.3% | 10.36% | - |
| EPS (Basic) | 0.00 | 0.28 | 0.13 | 0.93 | 0.84 |
| Diluted Shares Outstanding | 0 | 1.56M | 1.56M | 1.56M | 1.56M |
| Basic Shares Outstanding | 0 | 1.56M | 1.56M | 1.56M | 1.56M |
| Dividend Payout Ratio | - | - | - | - | - |
Liquidity and operational scale
According to reported figures, SKK achieved a 14.58% year-over-year revenue increase, signaling successful project acquisition within the Singaporean utility sector, though this top-line expansion has yet to provide the necessary scale to offset the company's significant fixed administrative overhead and achieve a sustainable path toward profitability.
The double-digit growth suggests that the company is effectively capturing demand for subsurface utility integration, likely driven by ongoing national infrastructure upgrades. However, investors should monitor whether this growth is sustainable or merely a reflection of lumpy, project-based recognition that fails to provide consistent cash flow.
As indicated by the financial snapshot, SKK maintains a 25.13% gross margin, which suggests that project-level execution remains fundamentally sound despite the broader income statement showing a -19.18% operating margin, highlighting a disconnect between direct project profitability and the company's current corporate cost structure.
The healthy gross margin implies that the company possesses specialized technical capabilities that command pricing power in the niche HDD market. The significant gap between gross and operating margins suggests that the current revenue base is insufficient to absorb the fixed costs required to maintain regulatory compliance and specialized labor.
Based on the reported -19.18% operating margin, SKK currently lacks the operating leverage required to convert its 14.58% revenue growth into bottom-line gains, as administrative and fixed costs appear to be scaling disproportionately to the company's current $12.9 million revenue base in the Singaporean market.
The inability to achieve positive operating income despite healthy project-level margins warrants further investigation into the company's G&A efficiency. It appears that the firm is currently in a high-cost scaling phase where corporate overhead is suppressing potential profitability, necessitating a significant increase in project volume to reach breakeven.
With a cash balance of only $732,000 and a net margin of -22.55%, the company's financial position appears precarious, suggesting that SKK may face significant liquidity constraints if it cannot rapidly improve its cash conversion cycle or secure additional funding to support its ongoing project-based operations.
Short-sellers would likely focus on the company's limited cash reserves, which may restrict its ability to bid on larger, capital-intensive utility contracts that require substantial performance bonds. The current burn rate suggests that the company's survival is highly sensitive to the timing of government project payments and the management of working capital.
Quick answers to the most common questions about buying SKK stock.
For fiscal year 2025, SKK Holdings Limited (SKK) reported total revenue of $12.9M. This represents a 8.7% increase compared to $11.9M in 2021.
SKK Holdings Limited (SKK) reported a net loss of $2.9M for the fiscal year ending 2025.
SKK Holdings Limited (SKK) reported an operating income of $-2.5M, resulting in an operating profit margin of -19.2%. This margin reflects the operational efficiency of the business before interest and taxes.
SKK Holdings Limited (SKK) generated $3.3M in gross profit for the year, representing a gross profit margin of 25.1%. This demonstrates the company's core pricing power and production efficiency.