Reading between the lines in the MD&A 1Q26: TEAM Consulting Engineering and Management Public Company Limited (TEAMG)
EAMG (TEAM Consulting Engineering and Management PCL), a SET-listed Thai engineering firm, posted 1Q26 revenue up 25.8% to Bt631m on an EPC surge.
Reading between the lines in the 1Q26 Management Discussion and Analysis of TEAM Consulting Engineering and Management Public Company Limited (TEAMG): Revenue up 25.8%. Net profit up 6.2%. And a Bt405m gap between the two filings’ stated year-end 2025 backlog figures.
The numbers
EPC surge offsets flat consulting revenue
TEAMG is a Thai engineering consultancy providing project management, study, and design services for national infrastructure, alongside a Related Business segment offering Engineering, Procurement, and Construction (EPC) services. In 1Q26, total revenue rose 25.8% YoY to Bt631m, entirely driven by Related Business/EPC revenue, which surged 108.1% to Bt258m and reached 40.9% of the total. Engineering consulting revenue was little changed, down 1.1% YoY to Bt373m.
Higher-cost EPC mix pressures gross margin
Gross margin fell to 23.7% in 1Q26 from 28.2% in 1Q25, as cost of services rose 33.6% against revenue growth of 25.8%. The MD&A attributes the compression to the Related Business/EPC segment’s higher cost structure relative to engineering consulting. Net profit rose 6.2% YoY to Bt50m, a net margin of 8.0% against 9.5% in 1Q25.
Trade payables rise on advance price-locking for EPC materials
Total liabilities rose 6.3% to Bt2,324m from Bt2,187m at FY25, driven by higher trade payables as the company accelerated purchases and locked in prices for materials and equipment to support the EPC expansion and hedge against price volatility. The debt-to-equity ratio rose to 1.6x from 1.27x a year earlier. Backlog reached a record Bt6,057m at 31 March 2026.
What the numbers don’t show
Comparing the FY25 MD&A with 1Q26, a few things stand out.
The backlog growth calculation uses a different year-end 2025 figure than the FY25 filing itself
The FY25 MD&A states that backlog stood at Bt5,395m as of 31 December 2025, up Bt713m from Bt4,682m a year earlier. The 1Q26 MD&A reports backlog reaching a record Bt6,057m at 31 March 2026, and calculates the quarter’s growth against a stated year-end 2025 base of Bt5,800m, a Bt257m increase. The Bt405m gap between the two filings’ stated year-end 2025 backlog figures is not addressed in either document.
Government-driven growth strategy language does not reappear in 1Q26
The FY25 MD&A devoted a dedicated section to revenue growth by client segment, headlined “Government-Driven Growth Strategy,” disclosing that government-sector revenue rose 47% and private-sector revenue rose 16% during the year. The 1Q26 MD&A breaks revenue down by service type, engineering consulting versus Related Business/EPC, rather than by client, and gives no government or private-sector revenue growth figure for the quarter.
Joint venture and associate income swings from loss to profit, unexplained
In 1Q25, the Company’s share of profit from joint ventures and associates was a loss of Bt0.44m. In 1Q26, the same line reversed to a profit of Bt0.76m. For full-year FY25, this line was a loss of Bt3.66m, widening from a profit of Bt1.41m in FY24. Neither filing names the joint venture or associate involved, nor explains the reversal.
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