Leishen Energy Holding Co., Ltd. Announced Fiscal Year 2025 Financial Results Highlighting Strong Operating Cash Flow and Low Financial Leverage
MWN-AI** Summary
Leishen Energy Holding Co., Ltd. (Nasdaq: LSE) recently reported its financial results for fiscal year 2025, revealing a challenging period marked by declining revenues yet strengthened financial footing. The company's total revenues dropped from USD $63.5 million to USD $48.3 million, largely due to economic pressures in the oil and gas sector, cost constraints faced by customers, decreased market demand, and the ongoing China-US trade tensions. Despite revenue declines, Leishen Energy reported a positive net income of USD $1.25 million, driven by strong non-operating gains, although this figure represented a decline of USD $6.84 million from the previous year.
The company's gross profit also fell, reflecting reduced revenue and sustained cost pressures, while operating expenses increased, driven primarily by higher selling and marketing costs associated with global market expansion. Notable performance within the various business segments showed that clean-energy equipment sales accounted for 45.7% of total revenue but suffered a significant decline due to weakened demand and increased domestic competition. Leishen Energy is actively targeting international markets to revitalize growth.
CEO Hongliang Li expressed confidence in the company’s strategic positioning and operational resilience, noting that fiscal year 2025 was transitional rather than a reflection of core capabilities. CFO Zhiping Yu highlighted plans for enhanced investment in research and development, international expansion, and operational efficiency as part of a long-term capital strategy.
Looking ahead, the company aims to pursue growth opportunities in Central Asia, Southeast Asia, and the Middle East, while deeper engagement with both domestic and international clients is planned. Continued innovation and partnerships with leading technology brands will be critical for maintaining competitiveness in the evolving energy landscape.
MWN-AI** Analysis
In light of Leishen Energy Holding Co., Ltd.'s recent fiscal year 2025 results, which posted a decline in total revenues and gross profit amid a challenging economic environment, investors should carefully evaluate the company’s strategic direction and financial resilience. While revenue dropped from USD 63.5 million to USD 48.3 million, primarily due to an economic downturn affecting the oil and gas sector, the company has successfully strengthened its balance sheet through its IPO, showcasing low financial leverage and a robust cash position. This positions Leishen Energy well to navigate current operational challenges.
The substantial decline in revenue from clean-energy equipment, which constitutes nearly half of total revenues, suggests an urgent need for revitalization in this segment. However, management's commitment to international market expansion and new customer acquisition in the natural gas trading sector reflects a proactive strategy for recovery. Notably, the company's emphasis on enhancing operational efficiency, including cost control measures and supplier partnerships, points to a prudent approach amidst rising cost pressures.
Investors should also take note of the company's plans to boost R&D investments aimed at innovation and technology. Strengthening its patent portfolio is essential for long-term competitiveness, particularly as it seeks deeper engagement with international markets.
Despite the short-term decline in profitability, the strategic priorities laid out for fiscal year 2026—focusing on international expansion, customer diversification, and operational efficiency—indicate a pathway toward potential growth. However, given the current market challenges, a cautious investment approach is advisable. Investors could consider incrementally acquiring shares as the company demonstrates improved performance metrics and renewed revenue momentum in the coming quarters.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
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
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Revenue was USD $4.0 million, representing for 8.2% of our revenue.
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:
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- 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**
How does Leishen Energy Holding Co. Ltd. LSE plan to navigate the challenges posed by the economic downturn and China-U.S. trade tensions in fiscal year 2026?
What specific measures is Leishen Energy Holding Co. Ltd. LSE implementing to enhance its operational efficiency and cost control in light of increased operating expenses?
Can Leishen Energy Holding Co. Ltd. LSE provide more details on its international expansion strategy and the targeted markets in Central Asia, Southeast Asia, and the Middle East?
How does Leishen Energy Holding Co. Ltd. LSE intend to strengthen its partnerships with world-leading technology brands to improve its product offerings and market competitiveness?
**MWN-AI FAQ is based on asking OpenAI questions about Leishen Energy Holding Co. Ltd. (NASDAQ: LSE).
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