Leishen Energy Holding Co., Ltd. Announced Fiscal Year 2025 Financial Results Highlighting Strong Operating Cash Flow and Low Financial Leverage

Rhea-AI Summary

Leishen Energy (Nasdaq: LSE) reported fiscal year 2025 results on Feb 15, 2026, showing a transition year: total revenue fell to USD 48.3M from USD 63.5M, gross profit declined to USD 8.5M from USD 16.0M, and operating expenses rose to USD 10.2M. Net income attributable was USD 1.25M, down USD 6.84M YoY. The company cited market headwinds but said its IPO, reduced leverage, improved liquidity, and a 125‑patent portfolio strengthen its financial foundation and support international expansion plans.

Positive

• Completed IPO that reduced leverage and improved liquidity
• Maintains a 125‑patent portfolio across key product areas
• Digitalization segment gross margin improved to 4.4%

Negative

• Total revenue declined from USD 63.5M to USD 48.3M
• Gross profit fell from USD 16.0M to USD 8.5M
• Operating expenses increased from USD 8.5M to USD 10.2M
• Net income attributable decreased by USD 6.84M to USD 1.25M
• Selling prices for some standardized products fell by 10%–40%

Key Figures

Total revenue FY25: $48.3 million Gross profit FY25: $8.5 million Operating expenses FY25: $10.2 million +5 more

8 metrics

Total revenue FY25 $48.3 million Declined from $63.5 million in fiscal year 2024

Gross profit FY25 $8.5 million Down from $16.0 million due to revenue declines and cost pressures

Operating expenses FY25 $10.2 million Increased from $8.5 million on higher selling, marketing and R&D

Net income attributable $1.25 million Remained positive but decreased by $6.84 million year-over-year

Clean-energy equipment share 45.7% Portion of total revenues from clean-energy equipment sales

Digitalization revenue $2.73 million Digitalization and integration equipment segment revenue; gross margin improved to 4.4%

New energy revenue share 40.4% Portion of total revenues from New Energy sales

Patent portfolio 125 patents Covers clean-energy equipment, oil and gas engineering services, new energy operations

Market Reality Check

Price: $4.36 Vol: Volume 2,801 is below the...

low vol

$4.36 Last Close

Volume Volume 2,801 is below the 20-day average of 9,575, with relative volume at 0.29, suggesting a subdued response to the earnings release. low

Technical Shares at $4.36 trade below the 200-day MA of $5.23 and sit between the 52-week low of $3.8 and high of $14.9899.

Peers on Argus

LSE fell 3.95% while sector peers were mixed: DTI gained 14.33%, SND rose 9.39%,...

1 Up

LSE fell 3.95% while sector peers were mixed: DTI gained 14.33%, SND rose 9.39%, DWSN added 8.62%, and RCON declined 6.92%. With only one peer in the momentum scan and moves not aligned, trading appears stock-specific.

Previous Earnings Reports

1 past event · Latest: Feb 18 (Neutral)

Same Type Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Feb 18	Annual earnings	Neutral	+2.6%	FY 2024 results with stronger cash flow but softer revenue and earnings.

Pattern Detected

The prior earnings release with mixed fundamentals and stronger cash flow saw a modest positive price reaction, suggesting investors have previously rewarded financial resilience despite revenue pressure.

Recent Company History

Recent history for Leishen Energy shows an emphasis on cash flow strength, international expansion, and governance formalities. The Feb 18, 2025 earnings highlighted surging operating cash flow but weaker revenue and net income, and still produced a 2.61% gain. Subsequent news in late 2025 focused on Middle East expansion via ADIPEC participation. The current fiscal 2025 results extend the narrative of revenue softness and higher costs, but again stress balance sheet strength and international growth plans.

Historical Comparison

+2.6% avg move · Past earnings updates produced an average move of 2.61%, with investors responding to strong cash fl...

earnings

+2.6%

Average Historical Move earnings

Past earnings updates produced an average move of 2.61%, with investors responding to strong cash flow even amid revenue pressure. The latest results again pair weaker topline with balance-sheet focus.

Earnings disclosures have progressed from FY 2024’s strong operating cash flow and modest revenue decline to FY 2025’s sharper revenue and profit pressure but continued emphasis on lower leverage and liquidity, alongside a consistent strategy of international expansion and technology investment.

Market Pulse Summary

This announcement details fiscal 2025 pressures, with revenue down to $48.3 million, gross profit ha...

Analysis

This announcement details fiscal 2025 pressures, with revenue down to $48.3 million, gross profit halved to $8.5 million, and operating expenses rising to $10.2 million, yet net income remains positive. Management underscores low leverage, liquidity, and a 125‑patent portfolio, alongside international expansion and R&D investment. Investors may monitor execution in overseas markets, margin stabilization, and progress in higher-margin segments like engineering services to assess how the transition strategy unfolds.

AI-generated analysis. Not financial advice.

BEIJING, Feb. 15, 2026 (GLOBE NEWSWIRE) -- Leishen Energy Holding Co., Ltd. (“Leishen Energy,” the “Company”) (Nasdaq: LSE) announced its fiscal year 2025 financial results on January 30, 2026, reflecting a transition period: core operating performance weakened, but the Company strengthened its financial foundation through the IPO, reduced leverage, and improved liquidity. The Company’s cash position and low debt levels provide flexibility to address operational challenges, while continued improvements in asset quality help mitigate financial risks.

Fiscal Year 2025 Financial Highlights

Total revenues declined from USD $63.5 million to USD $48.3 million due to the economic downturn, particularly the overall sluggishness in the oil and gas market, coupled with customers’ cost pressures, weaker market demand, and the impact of the China-US trade tensions. The Company continues to expand into overseas markets and domestic natural gas trading businesses as part of its long-term growth strategy.

Gross profit fell from USD $16.0 million to USD $8.5 million due to revenue declines and persistent cost pressures.

Operating Expenses increased from USD $8.5 million to USD $10.2 million, largely due to higher selling and marketing costs associated with international market expansion, as well as increased research and development.

Net Income remains positive due to strong non-operating gains, including short-term investment income and gains from disposal of equity investments.

Net Income Attributable to Leishen Energy was USD $1.25 million, reflecting a decrease of USD $6.84 million year-over-year.

Segment Performance

1. Clean-Energy Equipment
   
   • Revenue from clean-energy equipment sales accounted for 45.7% of our revenues. Revenue from clean-energy equipment sales decreased by $11,742,904 from $33,816,111. The decrease was mainly due to a decline in market demand, driven by the broader economic downturn. In addition, intensified domestic competition and customer cost-control measures led to a 10% to 40% reduction in selling prices for certain standardized products. The Company is actively pursuing the international market currently to drive future growth.
     
2. Digitalization and Integration Equipment
   
   • Revenue was USD $2.73 million, reflecting a modest year-over-year decline. Gross margin improved to 4.4% due to the implementation of effective cost control initiatives.
     
3. New Energy Sales
   
   • Revenue from New Energy sales accounted for 40.4% our revenues. The decrease was mainly due to the expiration of sales agreement with a major client. We are actively pursuing renewal of the agreement and expanding our customer base in the natural gas trading business.
     
4. Oil and Gas Engineering Technical Services
   
   • Revenue was USD $4.0 million, representing for 8.2% of our revenue.
     
   • This business segment is a key focus for the company, and the Company will continue to invest in this area to expand the scope and depth of the engineering and technical services. The Company expects that this segment will account for an increasing share of total revenue in the future.
     

Management Commentary

Hongliang Li, Chief Executive Officer of Leishen Energy, stressed that, “Although our revenue and profitability declined during fiscal year 2025 due to macroeconomic challenges, including the global economic slowdown and China-U.S. trade tensions, we remain confident in our long-term competitiveness and strategic positioning. The fiscal year represented a period of transition rather than a reflection of our core capabilities. We are actively expanding our market presence and strengthening our operational resilience, and we believe our efforts will deliver improved performance in the coming year.”

Zhiping Yu, CFO, commented: “We are actively pursuing growth in both domestic and international markets. Looking ahead, we plan to invest more in R&D and international collaboration to strengthen our fundamentals. Although short-term shareholder returns may be affected by current market conditions, we are focused on our long-term capital strategy. By prioritizing key growth areas, we are confident in our ability to enhance future financial performance.”

Business Outlook

The Company plans to advance the following strategic priorities in fiscal year 2026 and beyond:

• • International Expansion: Pursue overseas opportunities across Central Asia, Southeast Asia, and the Middle East, including the development of joint spare parts warehouses with major oilfields and the delivery of power plant operation and maintenance projects in Middle East.
  • Technology and Innovation: Increase investment in R&D to further strengthen the Company’s patent portfolio, which currently includes 125 patents spanning clean-energy equipment, oil and gas engineering services, and new energy production and operations.
  • Customer Diversification: Deepen engagement with long-standing domestic clients while building a stronger international pipeline, with a focus on digital solutions and integrated equipment sales.
  • Operational Efficiency: Enhance cost control measures, reinforce supply chain management, and establish new supplier partnerships to better mitigate inflationary pressures and operational disruptions.
  • Strengthening Partnerships with World-Leading Technology Brands: The Company will foster deeper collaboration with internationally renowned brands by integrating their advanced technologies and securing market support for spare parts and services. This strategy is designed to uphold superior product quality and sustain the competitiveness of our core products.

About Leishen Energy Holding Co., Ltd.

Leishen Energy is a provider of clean-energy equipment, digitalization and integration solutions, new energy sales, and oil and gas engineering technical services. The Company is committed to driving innovation and sustainable growth across the energy sector.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially. Leishen Energy undertakes no obligation to update any forward-looking statements except as required by law.

For more information, please contact:

Investor Relations Department

Email: ir@r-egroup.com

FAQ

Why did Leishen Energy (LSE) revenue fall in fiscal year 2025?

Revenue fell to USD 48.3M mainly due to weaker oil and gas demand and customer cost pressures. According to the company, macroeconomic slowdown, China‑US trade tensions, and reduced selling prices drove the decline.

How did Leishen Energy (LSE) maintain profitability despite lower sales in FY2025?

The company reported positive net income of USD 1.25M due to non‑operating gains. According to the company, short‑term investment income and gains on equity disposals offset weaker operating results.

What cost trends affected Leishen Energy (LSE) in fiscal 2025?

Operating expenses rose to USD 10.2M, driven by higher selling, marketing and R&D costs. According to the company, international expansion and increased R&D spending raised expense levels despite cost controls elsewhere.

What strategic priorities did Leishen Energy (LSE) announce for fiscal 2026?

Key priorities include international expansion, increased R&D, customer diversification, and operational efficiency improvements. According to the company, efforts target Central Asia, Southeast Asia, Middle East, and strengthening supplier and technology partnerships.

How much of Leishen Energy's (LSE) 2025 revenue came from clean‑energy equipment?

Clean‑energy equipment represented 45.7% of revenues with a revenue decline of USD 11.74M. According to the company, weaker market demand and price reductions drove lower sales in this segment.

Does Leishen Energy (LSE) have patents supporting its technology strategy?

Yes, the company reported a portfolio of 125 patents across clean‑energy equipment, engineering services, and new energy. According to the company, this patent base underpins planned R&D and product competitiveness.