DEWA's Profit Surges 7,695% in 2025, Here Are 4 Strategies from Darma Henwa for 2026

PT Darma Henwa Tbk (DEWA) posted a surge in net profit amounting to Rp4.31 trillion for the full year 2025, skyrocketing 7,695% compared to Rp55.24 billion in 2024. This achievement marks one of the most dramatic performance turnarounds in Indonesia’s mining contractor sector. This milestone is significant for investors as it demonstrates that the management’s heavy equipment insourcing strategy is yielding tangible and measurable results, while opening broader business expansion opportunities in 2026. Based on disclosures to the Indonesia Stock Exchange (BEI) and the Financial Services Authority (OJK) on 22 April 2026, the key driver behind this profit surge is the strategy of insourcing its own heavy equipment fleet (in-house fleet), which is gradually replacing subcontractors. Throughout 2025, total waste removal production reached 138.63 million bank cubic metres (bcm), with the portion handled by the internal fleet increasing to 95.21 million bcm. Coal production amounted to 17.04 million tonnes. This strategy successfully reduced the cost of goods sold by 2.90% to Rp5.43 trillion, even as revenue grew 5.98% to Rp6.39 trillion. EBITDA for 2025 jumped 102.56% to Rp1.75 trillion. Return on Equity (ROE) soared from 1.82% to 50.13%, reflecting a drastic improvement in capital efficiency. On the funding side, DEWA secured a syndicated credit facility from BCA and Bank Mandiri with a total ceiling of Rp5 trillion by the end of December 2025. Total assets increased to Rp16.73 trillion from Rp8.53 trillion at the end of 2024, in line with production capacity expansion and strengthened capital structure. Darma Henwa is a coal mining contractor listed on the Indonesia Stock Exchange under the stock code DEWA. The company provides integrated mining services, including overburden removal (waste removal) and coal production. Amid significant market volatility, management announced a share buyback programme with a maximum allocation of Rp950 billion, effective from 19 November 2025 to 19 February 2026. This step was taken to maintain share price stability and enhance investor confidence in the company’s long-term fundamentals. As of 31 December 2025, DEWA had realised the buyback of 372 million shares at an average price of Rp430 per share, totalling Rp160 billion. By the end of 2025, DEWA’s share price reached an all-time high of Rp745 per share, with a market capitalisation surpassing US$1.81 billion. The company also undertook a series of strategic corporate actions, including the issuance of 18.83 billion Series B shares via PMTHMETD to convert part of its debt into equity, as well as changing its investment status from PMA (foreign) to PMDN (domestic), which opens up broader strategic opportunities in the national mining sector. For 2026, the Board of Directors has formulated four strategic pillars as a compass for transformation towards the Reshaping the Future phase. The first pillar, Transformation 2.0, focuses on expanding the client base, beyond-mining services, and transitioning heavy equipment from diesel to electric for long-term energy efficiency. The second pillar, Cultural & Organizational Shift, includes strengthening the organisation, updating vision-mission, and human resource development. The third pillar, Technology & Innovation, encompasses enhancements in operational technology and the implementation of Good Mining Practice (GMP) across all work areas to optimise production cycles and fleet utilisation. The fourth pillar, Long-Term Perspective, is the most strategic, encompassing the adoption of the Light Asset Model and business diversification beyond coal through the expansion of PT Gayo Mineral Resources (GMR). As a realisation of diversification, DEWA, through its subsidiary PT Mahadaya Imajinasi Nusantara, became the controlling shareholder with 99.75% in PT Gayo Mineral Resources. Approval from the Ministry of Energy and Mineral Resources was obtained in November 2025, allowing GMR’s financial statements to be fully consolidated into DEWA’s reports, thereby expanding business exposure beyond the coal segment. Although business prospects are deemed positive, management has identified several external challenges that need to be anticipated. The national coal production target is declining from around 790 million tonnes in 2025 to approximately 600 million tonnes in 2026, which could pressure contractor workloads. The implementation of the B50 policy also increases operational cost pressures, particularly on heavy equipment fuel consumption. On the macro side, the IMF projects global economic growth for 2026 at around 3.3%, while Bank Indonesia estimates Indonesian economic growth in the range of 4.9–5.7%. The Board of Commissioners views government policies promoting downstreaming and designating mining as a priority sector as constructive opportunities for DEWA, which now has a much stronger foundation. PT Darma Henwa Tbk (DEWA) has successfully recorded an extraordinary performance reversal in 2025, with net profit surging over 7,000% to Rp4.31 trillion, driven by the internal fleet insourcing strategy that reduced costs and significantly boosted margins. Entering 2026, the company aims to accelerate growth through four strategic pillars, including business diversification beyond coal and the adoption of the Light Asset Model. Despite pressures from the decline in national coal production targets and the B50 policy, DEWA’s far stronger financial and operational foundations compared to before position it advantageously.