BRC Asia Ltd Delivers Strong Growth with Record Order Book Surge February 25, 2026
Company Overview
BRC Asia Ltd is a Singapore-based construction company that specialises in providing building and infrastructure solutions. The company operates in the construction sector, serving various segments including residential housing, airport infrastructure, and healthcare projects.
Strong Financial Performance Drives Growth
BRC Asia reported impressive first-quarter 2026 results, with revenue surging 27% year-on-year to S$444 million, marking the highest revenue growth since the third quarter of 2022. This substantial increase was primarily driven by an estimated 42% year-on-year rise in delivery volumes, reflecting stronger project offtake across the company’s portfolio.
The company’s profit after tax and minority interests (PATMI) jumped 30% year-on-year to S$27.3 million, demonstrating robust operational performance. Net margins expanded to 6.1%, up from 5.6% in the previous year, whilst gross margins reached 10.5%, representing a significant improvement of 2% year-on-year.
Record Order Book Provides Future Growth Visibility
The standout achievement for BRC Asia was its order book performance, which spiked 47% year-on-year to reach a record S$2.2 billion in the first quarter of 2026. This substantial increase was underpinned by successful contract wins across multiple sectors, including HDB Build-To-Order (BTO) contracts, the prestigious Changi Airport Terminal 5 project, and various healthcare initiatives.
The company’s S$570 million Changi Airport Terminal 5 contract represents a significant component of the order book and is expected to progress substantially over the coming period. Most of the current order book is anticipated to be completed within the next two years, providing strong revenue visibility.
Favourable Market Outlook
The construction landscape in Singapore appears increasingly supportive, with the Building and Construction Authority projecting total construction demand of S$47-53 billion in 2026. This represents a substantial 61% increase above the 20-year historical average, indicating a robust pipeline of opportunities.
Research Recommendation and Outlook
Phillip Securities Research maintains a BUY recommendation on BRC Asia, raising the target price to S$5.30 from the previous S$5.10. The analysts increased their FY26 revenue and PATMI forecasts by 16% each, reflecting confidence in stronger project offtake driven by the record order book. The stock offers an attractive FY26 dividend yield of 5.3%, making it appealing for income-focused investors.
Frequently Asked Questions
Q: What was BRC Asia’s revenue growth in 1Q26?
A: BRC Asia’s revenue surged 27% year-on-year to S$444 million in 1Q26, representing the highest revenue growth since 3Q22.
Q: What drove the strong revenue performance?
A: Revenue growth was driven by an estimated 42% year-on-year increase in delivery volumes due to stronger project offtake across the company’s portfolio.
Q: What is Phillip Securities Research’s recommendation and target price?
A: Phillip Securities Research maintains a BUY recommendation with a raised target price of S$5.30, up from the previous S$5.10.
Q: How did profitability perform in 1Q26?
A: PATMI jumped 30% year-on-year to S$27.3 million, with net margins improving to 6.1% from 5.6% in the previous year.
Q: What is the outlook for Singapore’s construction market?
A: The Building and Construction Authority projects total construction demand in Singapore to be S$47-53 billion in 2026, which is 61% higher than the 20-year historical average.
Q: What is the expected dividend yield?
A: BRC Asia trades at an attractive FY26 dividend yield of 5.3%, making it appealing for income-focused investors.
Q: What are the key projects in BRC Asia’s order book?
A: Major projects include HDB BTO contracts, the S$570 million Changi Airport Terminal 5 contract, and various healthcare projects, with most expected to be completed within two years.
This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.
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About the author
Yik Ban Chong
Ben covers fundamental research on construction and semiconductor companies. He graduated from the National University of Singapore with a Second-Upper Honours Degree in Industrial and Systems Engineering.
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