Phoenix Asia Holdings (NASDAQ:PHOE) reported unaudited financial results for the six-month period ended September 30, 2025, on Tuesday, revealing a challenging start to the fiscal year defined by compressed margins and lower top-line volume.
The company, which provides diversified engineering and construction services, saw total revenue fall 7.3% to approximately $3.51 million compared to the prior-year period.
The decline in revenue was compounded by a simultaneous rise in the cost of revenue, which grew 2.2% to $2.77 million.
This dynamic led to a significant 31.4% drop in gross profit, which landed at $741,443 for the half-year session.
Management attributed the increased cost burden to the timing of major project completions and several variation orders that remain under active negotiation with clients.
Profitability at the bottom line experienced the steepest trajectory, with net income plummeting 68.6% to $198,336.
The sharp contraction reflects the impact of fixed operational overhead against a narrowing gross margin, as the company navigates the tail-end of legacy contracts while awaiting the formalization of new project terms.
Despite the earnings pressure, Phoenix Asia continues to focus on its core project pipeline.
The company indicated that the current period's results were heavily influenced by the transition between large-scale infrastructure phases.