KPA-BM HLDGS (ASX: 02663) has announced a profit warning for the financial year ending March 31, 2026.

The company expects its consolidated profit after tax for the period to decline by no less than 60% compared to the previous financial year ended March 31, 2025.

The primary reason for this significant decrease is a drop in revenue, which has led to a reduction in gross profit.

Management attributes the revenue decline in its structural engineering business to the substantial completion of construction contracts that were ongoing as of March 31, 2025.

Furthermore, new projects secured near the end of the financial year are still in their early stages and have contributed only minimally to the year's revenue.

The reduction in gross profit was partially offset by cost savings achieved in administrative, other operating expenses, and financial costs during the year.