Lahore: Pak Elektron Limited (PAEL) has announced a 62% year-over-year increase in its full-year 2025 earnings per share, reaching Rs4.16. However, the earnings for the year fell short of expectations as the company's gross margins were lower than anticipated, according to a recent press release.
According to JS Global, PAEL's fourth-quarter 2025 results showed earnings of Rs795 million, translating to an earnings per share of Rs0.86, marking a 58% year-over-year and a 17% quarter-over-quarter increase. The improvement in earnings was primarily driven by a 42% year-over-year and 48% quarter-over-quarter rise in net sales, which reached Rs16.7 billion. This growth was largely attributed to the expansion of the company's appliances division.
For the entire year of 2025, PAEL's net sales rose to Rs64 billion, representing a 20% increase from the previous year. The appliances segment's contribution to total sales grew to 64%, up from 58% in 2024, while export sales in the power segment accounted for 9% of total sales.
Despite these gains, the company's gross margins in the fourth quarter of 2025 decreased to 26.5%, compared to 27.0% in the same period the previous year and 27.5% in the third quarter of 2025. The decline was attributed to a change in product mix. However, for the full year, gross margins improved to 27.0%, supported by currency stability.
PAEL also recorded a tax reversal of Rs296 million in the fourth quarter of 2025, a significant shift from a tax expense of Rs664 billion in the fourth quarter of 2024. The effective tax rate for 2025 stood at 37%, down from 39% in 2024.
Additionally, distribution expenses in the fourth quarter of 2025 surged by 4.3 times year-over-year and 55% quarter-over-quarter to Rs1,260 million. Overall, for 2025, distribution expenses increased by 43% year-over-year to Rs4.4 billion, driven by higher volumetric sales.
PAEL is currently trading at a price-to-earnings ratio of 5.2 times for 2026 and 4.5 times for 2027, indicating market expectations for the company's future performance.
The post Pak Elektron Limited Reports 62% Year-Over-Year Increase in 2025 Earnings appeared first on Pakistan Business News.