Hock Lian Seng Holdings Limited on Aug, 5 2026 issued a clarification on why outlook statements made on Apr, 17 2026 and May, 14 2026 differed from the unaudited condensed interim financial statements for the six months ended Jun, 30 2026.

The company said higher-than-anticipated costs at its two design-and-build contracts—Aviation Park Station and Tunnels, and Serangoon North Station and Tunnels—drove a downward revision of contract margins and led to onerous-contract provisions.

Management cited design enhancements, additional enabling works such as traffic and utility diversions, and inflation in concrete, steel, manpower, transportation and subcontractor expenses as key factors. Cost-sharing mechanisms, including material price fluctuation clauses and ex-gratia payments, were described as insufficient to offset these increases.

As of Aug, 5 2026, Aviation Park Station was approximately 70% complete, while Serangoon North Station had reached about 46% completion. The two projects make up the group’s entire civil-engineering order book, which stood at 390 million Singapore dollars on Dec, 31 2025.

The company reiterated that 2026 revenue will depend on construction progress and said it continues to engage project owners on cost-recovery claims.