As Singapore celebrates 60 years of nation-building (SG60) and accelerates its public housing programme with a target of over 55,000 new flats by 2027, key infrastructure providers are set to play a pivotal role in shaping the city-state’s sustainable urban future. Darco Water Technologies Limited (“Darco” or “the Group”), a Mainboard-listed company stands out by leveraging its Pneumatic Waste Conveyance System (PWCS) to meet the rising demand for smart, eco-friendly estate solutions.
Singapore’s Housing & Development Board (HDB) has outlined an expansive public housing agenda, with plans to roll out over 55,000 flats in the next two years. This scale of development presents a unique opportunity for companies like Darco, whose technologies are aligned with such priorities emphasising sustainability, smart technology integration, and urban livability enhancements.
Integrated waste management solutions like Darco’s PWCS have emerged as key enablers in these efforts, offering cleaner, more hygienic, and environmentally sustainable waste disposal alternatives suitable for dense urban settings.
At the heart of Darco’s value proposition is its PWCS, a centralised and automated waste collection technology utilising underground vacuum pipes to transport refuse efficiently. This technology reduces the need for traditional refuse collection methods which are labour-intensive.
The integration of PWCS in Singapore’s new estates and smart townships positions Darco as a vital infrastructure partner in the city’s quest for smarter, greener living environments. With increasing government emphasis on sustainable urban solutions, Darco is well aligned to capitalise on a visible and expanding pipeline of future projects.
Darco recently reported their first half financials ended 30 June 2025 (“1H2025”), reflecting a nuanced balance of short-term operational headwinds and strategic progress that strengthens its foundation for future growth. For investors closely tracking Singapore’s evolving smart estate landscape, Darco presents a compelling study of resilience, operational discipline, and forward-looking positioning.
The Group’s 1H2025 financials provide a comprehensive view of the Group’s current operational landscape. The Group reported revenue of S$23.0 million for 1H2025, down by 16.4%. This decline stems from slower project progress and fewer new contract awards in Singapore and Malaysia, compounded by delays from main contractors.
However, the Group’s Operation and Maintenance (O&M) Services showed promising growth. O&M revenue increased 20.6% to S$7.6 million. This shift signals a move towards more predictable cash flow and enhanced earnings resilience.
Additionally, the divestment of non-core industrial land and vacant factory asset in Malaysia demonstrated a disciplined approach to capital allocation. Proceeds from these sales were prudently redirected towards working capital needs, reinforcing Darco’s commitment to optimising asset utilisation.
Darco’s successful securing of a Design, Build and Operate contract in 2024 for a District PWCS project with HDB is key. The contract, coupled with a 10-year Operation and Maintenance agreement, not only broadens Darco’s portfolio to 17 Smart District PWCS Systems but also solidifies its standing as a trusted long-term infrastructure partner within Singapore’s public housing ecosystem.
This contract win underscores the Group’s competitive advantage in combining technological innovation with proven operational expertise.
Darco embodies a specialised and resilient investment opportunity within Singapore’s evolving environmental infrastructure sector. Despite short-term operational and market challenges reflected in its 1H2025 results, the Group’s strong technology offering, expanding recurring revenue base, and prudent financial management provide a robust foundation for long-term growth.
As Singapore continues to prioritise smart, sustainable urban development, Darco’s integral role in delivering innovative waste and water solutions positions it well to capture growth opportunities and drive shareholder value.