Delixy Holdings shares surge 18.29% intraday after reporting higher H1 2025 net profit despite revenue decline.

Delixy Holdings surged 18.29% intraday after reporting higher-than-expected net income in its H1 2025 earnings. Despite a 29.7% year-over-year revenue decline to $102 million, the company’s net income rose to $0.56 million from $0.45 million, driven by cost-cutting measures and improved operating efficiency. The earnings report highlighted a $0.4 million operating profit (up from $0.2 million in H1 2024) and a 0.037 basic earnings per share, signaling improved profitability. This performance contrasted with broader concerns over the company’s high debt-to-equity ratio and thin margins, but the earnings resilience likely spurred short-term optimism among investors. The stock’s intraday rally directly aligned with the positive earnings surprise, overshadowing longer-term operational risks.