Primech (NASDAQ:PMEC) outlined its strategy to use robotics to address rising labor costs in its Singapore facilities-services business, highlighting a $177 million contract backlog, more than 500 active contracts and plans to expand its HYTRON restroom-cleaning robot internationally.
Jordan McCreary, Chief Business Officer of Primech Holdings and Primech AI, presented on behalf of Chairman and CEO Ken Ho and CFO Kitty Lee. McCreary said the Singapore-headquartered company’s operating businesses date to 1988 and currently employ more than 3,000 people, with more than 100 robots deployed at client sites.
The company’s facilities operations include Primech A&P, Maint-Kleen and Primech AI, its robotics research and development arm. McCreary described the company’s model as a mature services business that provides a built-in deployment channel for its robotics products, enabling Primech to test robots at its own customer sites before expanding third-party sales.
Labor Costs Pressure Facility-Services Margins
McCreary said labor represents approximately 85% of Primech’s direct costs, making wage increases a central challenge for the company’s fixed-price facilities contracts. Singapore’s progressive wage model has raised the monthly wage floor for general cleaners from about SGD 1,300 in 2022 to SGD 2,080 currently, with the floor expected to reach SGD 2,420 in 2028, according to the presentation.
For restroom cleaners, wages are expected to rise from SGD 1,530 to SGD 2,835 over the same period. McCreary also cited an aging workforce, saying 62% of resident cleaners and laborers in Singapore are age 60 or older, while only 10% are under 40.
Government support for the wage increases is also declining. McCreary said co-funding under Singapore’s Progressive Wage Credit Scheme fell from 75% in 2023 to 30% currently and is expected to reach 20% in 2028, its final year.
Primech said grants netted into its cost of revenue declined to $2.8 million from $4.1 million in the prior year, while gross margin fell to 17.1% from 23.6%.
Fiscal 2026 Results and Balance Sheet
For the fiscal year ended March 31, 2026, Primech reported revenue of $78 million, up about 5% from $74.3 million. Salaries increased 17.6%, compared with a 4.9% rise in revenue, according to McCreary. The facilities segment generated $6.1 million in profit under U.S. GAAP, though the company reported an overall net loss of approximately $3 million after corporate costs, interest expense and investment in the robotics segment.
Primech AI generated about $12,000 in direct outside leasing revenue during fiscal 2026, its first year leasing robots. McCreary said robots used within Primech’s own facilities contracts contribute revenue within the facilities-services segment rather than robotics revenue.
As of March 31, the company reported $42.5 million in total assets, $30 million in liabilities, $12.5 million in shareholders’ equity and $8.9 million in cash. It also reported $7.6 million of undrawn facilities and $8.2 million in working capital. Operating cash flow was negative by roughly $4 million, primarily due to working-capital movements, including an increase in receivables.
After year-end, Primech received a second $2 million tranche of a 7% convertible note from WELLE Environmental Group, bringing the total note amount to $4 million. The notes convert at $1.30 per share. The company also agreed to sell its Ubi Crescent property for approximately $8.1 million and said the property’s $4.3 million mortgage would be repaid from the sale proceeds upon completion.
Robotics Deployment and HYTRON Expansion
Primech said it had publicly announced more than $163 million in contract awards across nine sectors since August 2025. The awards include contracts involving robotics commitments in social services, universities, hawker centers, polytechnics and commercial facilities. McCreary emphasized that these figures represent total contract values rather than robot sales, and that robot counts represent commitments under awards rather than units already deployed.
The company’s HYTRON robot is designed to autonomously clean restrooms, including toilets, urinals, sinks, mirrors and surrounding floors. McCreary said it uses a six-degree-of-freedom arm, computer vision and SLAM navigation, with a technician mapping a site during deployment.
Primech said HYTRON was added to Singapore’s Productivity Solutions Grant supportable-equipment list in November 2025, allowing qualifying customers to receive up to half of the cost of a unit through government co-funding. The company’s first public-sector HYTRON lease was signed in May 2026 on a three-year term.
Management said current manufacturing cost is about $31,900 per unit and has a target of approximately $19,100 at production volumes of about 300 units. It is targeting roughly 40% gross margin on leasing, although McCreary stressed these figures are management targets rather than guidance. Mass production is planned for the first quarter of calendar 2027.
International Channels and Fiscal 2027 Priorities
Primech cited HYTRON deployments or proof-of-concept activity in Hong Kong, the United States and Japan. The company incorporated Primech USA in September 2025 and said UL certification and a U.S. assembly pathway remain in progress.
For fiscal 2027, management said its priorities include delivering its backlog, repricing contracts to account for wage increases, expanding HYTRON leases, opening international distribution channels and managing its balance sheet. The company said it expects availability in South Korea following KC certification and cited a 200-unit commitment over 24 months for Greater China through Hong Kong and Macau distributors.
McCreary also said Primech remains subject to Nasdaq’s minimum bid-price requirement through February 2027. Shareholders approved share-consolidation authority at the company’s Oct. 14 annual general meeting as a backstop, though management said it intends to regain compliance through share-price performance.
About Primech (NASDAQ:PMEC)
Primech Holdings Limited (NASDAQ: PMEC) is a facilities services company that provides integrated building maintenance and support services. Through its operating subsidiaries, the company helps organizations manage the day-to-day upkeep, cleanliness and functionality of their properties.
Its services include janitorial and cleaning operations, facility maintenance, staffing and other related support activities. Primech serves a range of customers and facilities, including commercial properties, industrial sites and public-sector locations, offering services that can be delivered as part of an integrated facilities management program.
The company is primarily focused on the Israeli market.
