PT United Tractors (UNTR), a member of the Astra Group, is confident of posting strong performance in the 2025 fiscal year, driven by its growing diversification beyond coal and into the mineral sector.

United Tractors' Corporate Secretary, Sara K. Loebis, said sales of heavy equipment are expected to gradually increase, aligning with the company’s plan to increase its coal production capacity. In addition to coal and gold, these sectors are also projected to see a steady increase in sales throughout the year.

UNTR has set its coal production target at 13.7 million tons in 2025, up from 13 million tons in 2024. This increase is not due to changes in royalties but is instead part of the company’s broader strategy to expand its production capacity.

Beyond coal, United Tractors is now expanding into mineral extraction, including nickel, silver, gold, copper, and bauxite. Director Iwan Hadiantoro said the company has started extracting raw mineral materials that will later be processed using Rotary Kiln Electric Furnace (RKEF) technology, a method that uses high heat to extract nickel and produce stainless steel.

The RKEF facility, currently under construction since last year, involves an estimated investment of US$160 million (Rp2.6 trillion). The project is expected to be completed between late 2026 and 2027.

Despite this major investment, United Tractors remains cautious in allocating new funds. Sara emphasized there are no immediate plans for new investments beyond existing projects. Capital expenditure this year will focus on improving current business infrastructure, with a budget allocation ranging from Rp900 million-Rp1 billion.

On the financial front, the company is optimistic even though it has not released a specific target for accrued revenue in 2025. Sara highlighted that growth in heavy equipment, gold, and coal sales should contribute positively to this year’s financial performance.

In 2024, United Tractors reported a net profit attributable to parent shareholders of Rp19.5 trillion, a 5.24 percent decrease from Rp 0.6 trillion in 2023. However, net revenue rose by 4.54 percent to Rp134.4 trillion, up from Rp128.5 trillion the previous year.

A detailed breakdown of 2024 revenue shows that income from coal mining sales to related parties dropped to Rp9.2 trillion from Rp13.9 trillion in 2023. In contrast, construction machinery revenue increased to Rp201.8 billion from Rp189.9 billion, and other income reached Rp3.1 billion. Sales to third parties also grew, with machinery sales climbing to Rp32.4 trillion from Rp31.6 trillion and service revenue hitting Rp16.7 trillion.

On the stock market, UNTR shares have experienced year-on-year fluctuations. As of April 25, 2025, shares closed at Rp23,100, down 7.14 percent from Rp 24,875 on April 29, 2024. However, in the past week, the stock showed a 3.24 percent rebound, closing at Rp22,900 at the end of last week’s trading.