Adaro Andalan Indonesia's Q3 2025 Financial Results: Challenges in Coal Market

Financial Performance Overview

PT Adaro Andalan Indonesia Tbk (AADI) reported disappointing financial results for the third quarter of 2025, with significant declines in both revenue and net profit. The company recorded revenue of US$3.61 billion for Q3 2025, representing a 10.86% year-on-year decrease. The net profit also declined substantially by 34.84% year-on-year to US$810.55 million.

Segment-wise Performance Analysis

The decline in financial performance was primarily attributed to the Mining and Coal Trading segment, where revenue decreased by 2.1% quarter-on-quarter to US$1.16 billion. Additionally, other segments experienced a sharp decline of 33.3% quarter-on-quarter to US$5 million. The revenue from exports, which constitutes a significant portion of AADI's income, dropped by 14.3% year-on-year to US$2.78 billion in the first nine months of 2025. In contrast, domestic revenue showed some resilience with a 3.0% year-on-year growth, reaching US$824 million during the same period.

Market Implications and Future Outlook

The financial performance of AADI is closely tied to the fluctuations in coal prices and market demand. The current challenges in the coal market have directly impacted the company's revenue and profitability. As the coal industry continues to navigate through these challenges, AADI's performance in the coming quarters will be closely monitored by investors and analysts.