In 2025, Thailand’s construction sector is expected to expand at a slower pace compared to the previous year, with projected growth of approximately 2.0-2.3%, broadly in line with overall economic growth. This reflects pressurefrom public budget constraints, tight financial conditions, and cautious private investment. The total value of constructioninvestment is projected to be approximately THB 1.45-1.50 trillion, representing a slight increase from 2024. The mainsupporting factor remains the continued implementation of public infrastructure investment projects. However, budget disbursement and approval of new projects have faced delays at certain periods, resulting in funds not being fully injectedinto the economic system as anticipated. Private sector investment is expected to remain stable or expand slightly, particularly in commercial construction projects in key economic provinces and major tourist cities such as Bangkok and other principal cities benefiting from the continued recovery of the tourism and service sectors. Nevertheless, entrepreneurs remain cautious in launching new projects due to persistently high financing costs. Competition intheconstruction contracting business remains intense in both public and private sector projects. Large and medium-sizedcontractors continue to adopt aggressive pricing strategies to maintain their backlog, placing pressure on gross profit margins across the industry. The prices of key construction materials, including steel, concrete, electrical cables, copper, aluminum, and building system equipment, remain high and volatile in line with global market prices. Although prices may soften in certain periods, they remain above pre-inflation levels, negatively affecting contractors’ profitability, particularly for fixed-price contracts.
Overall, Thailand’s economy during 2025-2026 is expected to grow at a relatively low rate, averaging 1.6-2.4%, due to key pressures from high household debt levels, structural economic challenges, and global economicuncertainty. For 2026, economic growth is projected at 1.9-2.0%. The construction industry in 2025 is expected to growat approximately 1.0-2.0%, mainly due to a limited number of new public project tenders, while private sector construction remains subdued amid high debt levels and economic and political uncertainties. Additionally, risingconstruction material prices and labor costs continue to constrain industry growth. Several large-scale projects in boththe public and private sectors have postponed their bidding schedules, resulting in a limited number of newprojects entering the market during the year. Consequently, both large and medium-sized contractors have faced intense pricecompetition to secure contracts. From January to December 2025, the Company won four projects in both the public and private sectors, with a total contract value of THB 2.56 billion (Exclude VAT). As of the end of December 2025, theCompany’sbacklogtotaled THB 10,709 million, which will begradually recognized as revenue in the future.
For the year ended 31 December 2025, the Company reported total revenue of THB 5,189.81 million, adecrease of 46% compared to THB 9,617.29 million in 2024. Revenue from construction contracts amounted to THB 4,726.83 million, decreasing by 46.% from THB 8,759.59 million in 2024. Construction costs in 2025 totaled THB3,922.13 million, representing 83% of construction contract revenue, resulting in a gross profit margin of 17.02%. Incomparison, in 2024 construction costs amounted to THB 9,212.20 million, or 105% of construction contract revenue, leading to a gross loss margin of 5.17%. The 2024 performance was significantly impacted by sharp increases intheprices of key materials such as reinforcing steel, electrical cables, and concrete, as well as labor shortages, which led to higher wage rates and overtime expenses. In addition, liquidity constraints faced by certain subcontractors requiredtheCompany to take over and manage some works directly. Administrative expenses increased from THB 457.88 millionin 2024 to THB 489.54 million in 2025, representing an increase of 6.91%, primarily due to higher personnel expenses and increased allowance for doubtful accounts. Meanwhile, finance costs decreased from THB 430.03 million in 2024 to THB 374.96 million in 2025 as a result of debt repayments to financial institutions under project financing facilities. Consequently, the Company recorded a net profit of THB 1.79 million for 2025, compared to a net loss of THB 909.90 million in 2024.
The Company has continuously improved its operational processes to enhance efficiency and effectiveness, focusing on delivering quality work in accordance with standards and within agreed timelines, while maintainingcost control within budget and ensuring timely collection of construction payments in line with contractual terms. Thesemeasures aim to strengthen the Company’s liquidity and financial stability. Furthermore, the Company has alignedits operational strategies across all departments with ESG principles, placing emphasis on environmental management inall construction projects, including waste management, pollution control affecting workers and surrounding communities, and strict enforcement of occupational health and safety standards. The Company also prioritizes the selectionof environmentally friendly materials and contributes to the reduction of greenhouse gas (GHG) emissions. Wastesegregation and recycling initiatives have been implemented across all projects in a concrete manner. The Companyhas set clear targets to enhance its environmental and occupational health and safety management systems to obtaininternational certifications, namely ISO 14001:2015 and ISO 45001:2018, reflecting its commitment to sustainableorganizational development. In terms of human resources, the Company emphasizes the development of employees and workers under the framework of respect for human rights, enhancing their knowledge, capabilities, and technical skills inconstruction and building systems, which are critical to delivering high-quality work recognized by clients and society. The Company also places continuous importance on value chain management, exchanging knowledge and experiencewith business partners and supporting the development and application of construction innovations and modern materials to improve efficiency, reduce environmental impact, and enhance long-term competitiveness. These initiatives forma keyfoundation for the Company’s stability and sustainable growth. In addition, the Company has established subcommittees to oversee various aspects of operations under a strong corporate governance framework, ensuring that risks inall dimensions areproperly assessed, managed, and mitigated in aprudent andsystematic manner.
On this occasion, the Company would like to express its sincere appreciation to all stakeholders, includingcustomers, business partners, management, employees, and both public and private sector organizations, for their continued support and trust, which have enabled the Company to achieve its objectives and move forward toward stableandsustainable growth in the future
