Business mix
- The company's business is divided into three major segments: government, transportation and commercial. Among them, the government and transportation sectors will achieve growth in the first quarter of 2026, while the revenue of the commercial sector will decline.
- Revenue trend: Revenue in the first quarter of 2026 was US$723 million, a year-on-year decrease of 3.7%-4%, but adjusted EBITDA increased by 32.4% year-on-year to US$49 million, and the profit margin increased from 4.9% to 6.8%.
- Costs and Strategy: The company plans to generate more than $200 million in proceeds from divestitures in 2026 and save more than $100 million through cost reduction initiatives to optimize its investment portfolio.
Current key questions
- Future guidance: Full-year revenue in 2026 is expected to be US$2.8-2.9 billion, and adjusted EBITDA is US$160-190 million; revenue in 2027 will stabilize or increase slightly, with an EBITDA target of US$190-220 million, and achieve positive cash flow.
- Business reserves: The new business pipeline expanded to US$3.5 billion (a year-on-year increase of 10%), and unperformed contracts are expected to bring future revenue of US$1.2 billion, 75% of which will be recognized within two years.
- Revenue continues to be under pressure but profit margins have improved significantly. Investors need to weigh the short-term revenue decline against the pace of mid- to long-term profitability and cash flow recovery.
