Avanceon Limited (AVN) reported consolidated diluted earnings per share of PKR 1.54 for CY25, compared to earnings per share of PKR 4.74 in CY24. Furthermore, in 1QFY26, the company reported earnings per share of PKR 0.13, compared to earnings per share of PKR 0.62 in the same period last year (SPLY). In 2022, Avanceon launched a plan to achieve USD 100mn in order generation by 2026.
Management has now revised this target to 2027. The company has shifted its customer base by moving away from high risk, contractor driven construction projects. As a result, around 80–90% of its business is now concentrated among top tier end users such as ADNOC, Aramco, SABIC and Qatar Energy.
For 2026, management has set an order generation target of USD 80mn and a revenue target of USD 70mn. In Pakistan, the company has already achieved its full year PO generation target of USD 21.5mn within the first six months of 2026. On the international side, the PO generation target stands at USD 60mn, of which USD 37.28mn had been achieved by June. Avanceon has signed a local partner in Kuwait and has identified USD 10mn worth of initial bids. Meanwhile, plans for expansion into Australia are also being finalized.
The company is also planning to construct a new office building in Lahore at an estimated capex of PKR 5bn, financed through a 70:30 debt to equity structure. Construction is expected to begin in 4QCY26. Management attributed recent earnings pressure to delays in order generation and IFRS related adjustments. These are expected to reverse in 2026, with management projecting profit of USD 8.5mn as contracts are delivered and revenue is recognized.
On the opportunity pipeline, management noted that countries such as the UAE are doubling down on oil and gas infrastructure investments, which should continue to support demand for Avanceon’s automation and control solutions. While the second half of the year is expected to remain stronger, the company’s ability to recognize revenue during the first two quarters has improved. Management expects revenue recognition to become more evenly distributed by 2028. Through its subsidiary Octopus, the company has invested heavily in eight registered intellectual properties. Commercialization of these in house products is expected to begin in 2027.
Regarding the proposed increase in authorized share capital from PKR 5bn to PKR 7.5bn, management clarified that this is purely a regulatory approval aimed at creating a buffer for future requirements.
Avanceon is currently a market leader in fuel station digitalization, holding an estimated 80% market share in the initial phase of 4,000 fuel stations targeted for automation. The company expects to digitalize 1,300 fuel stations in 2026, with a pipeline of more than 2,000 additional stations expected in the following year.
Important Disclosures
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