Ten-League International Holdings Ltd Annual Report - How They Did This Year

I’ve put together this guide to help you understand Ten-League International Holdings Ltd’s latest annual report. My goal is to cut through the corporate jargon and focus on the facts that matter to you as an investor.

1. What does this company do?

Ten-League is a Singapore-based business that keeps industrial projects running. They provide "turnkey" services, meaning they handle the equipment, technical engineering, and maintenance. Their business rests on three pillars:

• Selling heavy equipment: Providing machinery for construction, ports, and underground work.
• Engineering consultancy: Offering technical expertise to improve safety and productivity.
• Rental income: Leasing out equipment. This acts like a subscription, providing the company with more predictable cash than one-off sales.

2. Financial performance

For the year ending December 31, 2025, the company earned S$62.9 million in revenue, up from S$55.8 million in 2024. However, profit fell to S$3.1 million from S$4.2 million the previous year. This drop happened because higher costs for labor and equipment maintenance ate into their margins. Selling heavy equipment remains their biggest earner, making up about 60% of their total sales.

3. Major wins and challenges

The company is shifting toward electric equipment, like electric reach stackers, to follow green energy trends. However, they faced operational setbacks, including a work stoppage in July 2024 and vehicle damage in August 2024. These are red flags, as they signal potential project delays and unexpected costs. Additionally, relying on a temporary workforce creates extra administrative work regarding work permits and government regulations.

4. Financial health

As an "Emerging Growth Company," Ten-League provides less detailed financial reporting than larger firms. They also rely heavily on foreign labor, making them sensitive to government policy changes.

A major concern is customer payment risk. At the end of 2025, customers owed the company S$14.4 million. While they have lowered their "bad debt" estimates, they remain vulnerable if clients delay payments or run into financial trouble. The company also carries high debt, which they need to finance their expensive machinery. This leaves them with little cash on hand if a major client fails to pay.

5. Key risks

• The "SANY" Dependency: They buy up to 71% of their equipment from one supplier, SANY. If SANY stops supplying them or sells directly to their customers, Ten-League’s business could suffer significantly.
• Economic Sensitivity: Their success depends on the Singapore economy. If inflation rises or a recession hits, customers delay buying new equipment, which hurts Ten-League’s sales.
• Legal & Operational Uncertainty: They face constant risks from accidents, lawsuits, and equipment defects. Legal losses could hurt their reputation and finances.
• Technological Obsolescence: If they fail to adopt new tech, like remote-drive systems, their current equipment could become outdated and hard to sell or rent.
• Financing Hurdles: They must borrow money to buy new equipment. If interest rates stay high, they may struggle to grow or replace aging machines.

6. Future outlook

The company is betting its future on electric machinery and charging stations. This requires massive upfront spending, and there is no guarantee these green initiatives will be profitable. They are also considering joint ventures to grow, which carries the risk of losing control or dealing with difficult partners. Management hopes to expand into neighboring Southeast Asian markets, provided they can secure local approvals and reliable partners.

Bottom line: This is a high-risk, expensive business to run. They are trying to modernize, but they remain at the mercy of one major supplier, unpredictable construction cycles, and the need for constant, heavy borrowing. Before investing, consider whether you are comfortable with a company that has such high debt levels and a heavy reliance on a single equipment provider.