Adhi Karya posts 2025 loss on asset restructuring, reports Rp18.1 trillion in new contracts

By Romel S. Gurky

State construction firm PT Adhi Karya (Persero) Tbk (IDX: ADHI) reported a net loss of Rp5.4 trillion (about $318 million) in 2025, mainly due to non-operational adjustments linked to asset restructuring and provisioning measures.

The company said the loss was driven by efforts to improve asset quality and reflect a more prudent financial position, in line with the state-owned enterprise restructuring program led by PT Danantara Asset Management, which holds a 64.33% stake in the company.

Despite the loss, Adhi Karya recorded positive operating performance, with earnings before interest, tax, depreciation and amortization (EBITDA) reaching Rp763.8 billion (around $44.9 million).

The company secured Rp18.1 trillion (approximately $1.06 billion) in new contracts in 2025, with the majority coming from its engineering and construction segment, which accounted for 91% of total contracts. Government-funded projects made up 69% of new contracts, followed by state-owned enterprises at 23%.

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Total production reached Rp16.6 trillion (about $976 million) during the year, contributing to non-joint operation revenue of Rp9.7 trillion (around $571 million) and joint operation profit of Rp462 billion (approximately $27.2 million).

Adhi Karya said non-operational costs stemmed from three main measures: asset revaluation in its property subsidiaries, provisioning for receivables in its building construction unit, and adjustments following audit findings requiring more conservative reserves.

As of Dec. 31, 2025, the company reported total assets of Rp28.8 trillion (about $1.69 billion), liabilities of Rp25.5 trillion (around $1.50 billion), and equity of Rp3.3 trillion (approximately $194 million). Its debt-to-equity ratio based on interest-bearing debt stood at 2.41 times, below covenant limits.

The company said it retains recovery potential, supported by receivables from major projects including the Jabodebek LRT and the Aceh–Sigli toll road.

Looking ahead, Adhi Karya plans to focus on core construction activities, including infrastructure, downstream industrial projects, and green construction initiatives, while continuing business streamlining and divestment in line with its restructuring program.

Editing by Alexander Ginting