Reading between the lines in the 2Q26 Management Discussion and Analysis of TEAM Consulting Engineering and Management PCL (TEAMG): Revenue up 18.8%. Net profit up 29.3%. And a backlog down to Bt5,988m from a record Bt6,057m despite a new Bt434m contract win.
The numbers
EPC expansion keeps revenue climbing
TEAM Consulting Engineering and Management is a Thai engineering consultancy for large-scale infrastructure projects that has expanded into Engineering, Procurement, and Construction (EPC)- related businesses alongside its core consulting work. In 2Q26, revenue rose 18.8% YoY to Bt635m, with six-month EPC revenue up 114.3% YoY to Bt495m, or 39.1% of total revenue.
Net profit grows faster than revenue despite margin compression
Gross margin fell to 23.7% in 2Q26 from 25.4% in 2Q25, as the shift toward EPC work, which carries a higher cost structure than engineering consulting, continued to weigh on margins. Dividend income from the Company’s Netbay stake fell 32.2% YoY to Bt10m. Profit before income tax rose 31.1% YoY to Bt76m, and net profit rose 29.3% YoY to Bt61m, a net margin of 9.6% against 8.8% in 2Q25.
Debt-funded EPC growth pushes leverage higher
Total liabilities rose 5.0% to Bt2,297m as of 30 June 2026, as the Company took on additional bank borrowings to fund working capital for its expanding EPC project book. The debt-to-equity ratio rose to 1.75x from 1.35x a year earlier. Shareholders’ equity fell 8.9% to Bt1,311m, reflecting a Bt131m dividend payment and a Bt108m unrealized fair-value loss on an equity investment, partly offset by six-month net profit of Bt111m.
What the numbers don’t show
Comparing the 2Q26 MD&A with 1Q26, a couple of things stand out.
Backlog falls despite a Bt434m contract not mentioned in 1Q26
The 1Q26 MD&A reported a backlog of Bt6,057m, calling it a new record high. The 2Q26 MD&A reports a backlog of Bt5,988m as of 30 June, below the 1Q26 figure. The same filing describes a construction contract for the New Zoo, Phase 2, with the Company’s portion valued at Bt434m; this contract does not appear anywhere in the 1Q26 MD&A. Both filings measure backlog growth only against the FY25 year-end baseline, and neither states when the New Zoo award occurred relative to the two reporting dates or reconciles it against the quarter-on-quarter change.
Administrative expenses reverse from an 8.6% rise to a 6.8% fall
The 1Q26 MD&A reported administrative expenses rising 8.6% YoY to Bt84m. The 2Q26 MD&A’s own quarterly breakdown shows administrative expenses falling 6.8% YoY to Bt83m in the second quarter, a reversal from the first quarter’s increase. The six-month narrative describes costs as merely comparable to the prior year. Neither filing explains the components of either quarter’s movement or addresses the swing between them.