PETALING JAYA: Geotechnical instrumentation and power engineering solutions specialist Glostrext Bhd reported revenue of RM11.77 million for the first quarter ended June 30, 2026 (Q1’27), compared to RM14.38 million in the corresponding quarter last year (Q1’26), while profit after taxation (PAT) stood at RM1.84 million versus RM2.91 million a year earlier.
The year-on-year drop in revenue and PAT was mainly driven by softer contributions from the group’s pile instrumentation and static load test services segment, which saw new project launches deferred amid cost pressures across the construction industry arising from ongoing geopolitical tensions in the Middle East and broader global uncertainties.
This, coupled with the decline in higher-margin instrumentation and testing projects in Singapore, weighed on overall profitability for the quarter, even as the group continued to absorb fixed operating costs.
During the quarter, pile instrumentation and static load test services remained the group’s largest revenue contributor, accounting for 54.3% of total revenue. This was followed by provision and distribution of alternators and accessories at 22.4%, structural and ground instrumentation and monitoringservices at 17.5%, provision, distribution and maintenance of UPS systems at 4.7%, while other businesses contributed the remaining 1.1%.
Geographically, Malaysia emerged as the group’s largest market, contributing 54.87% of total revenue compared with 37.17% in Q1’26, supported by stronger engineering and trading activities.
Meanwhile, Singapore accounted for 45.13% of revenue, compared with 62.83% a year earlier.
Despite the year-on-year moderation, the group recorded an encouraging improvement from the immediate preceding quarter ended March 31 2026 (Q4’26). Revenue rose 6.12% to RM11.77 million from RM11.1 million, while PAT increased 70.37% from RM1.08 million.
The board has proposed a single-tier first interim dividend of 0.5 sen per ordinary share, amounting to about RM2.09 million, in respect of the financial year ending March 31, 2027. The entitlement date is Aug 14 with payment scheduled for Aug 28.
Commenting on the results, Lee Ming Jean, alternate director to managing director Dr Lee Sieng Kai, said the group’s underlying fundamentals remain intact despite the near-term challenges.
“The softer year-on-year performance reflects a more cautious operating environment, particularly within Singapore’s construction sector, where project launches were deferred. Nevertheless, the sequential improvement in our earnings demonstrates the resilience of our diversified business model and our ability to manage costs effectively while adapting to changing market conditions,” said Lee.
He added, “We continue to see encouraging momentum in our power engineering equipment and services business, supported by rising investments in data centres, cloud infrastructure and semiconductor manufacturing in Malaysia.
“As demand for reliable power infrastructure continues to grow, we expect this segment to become an increasingly meaningful contributor to the group’s revenue and earnings, complementing our established geotechnical instrumentation business.”
Glostrext continued to maintain a healthy balance sheet as at June 30, with total assets increasing to RM82.2 million from RM77.54 million as at March 31, underpinned by a stronger cash position, with cash and bank balances rising to RM15.01 million from RM11 million.
Total equity strengthened to RM67.59 million from RM65.67 million, while net assets per share improved to 0.16 sen from 0.15 sen. Total borrowings and lease liabilities remained modest at RM6.35 million, providing the group with continued financial flexibility to support future growth initiatives.
“The board remains confident in the group’s ability to deliver sustainable long-term growth and continue creating value for our shareholders,” Lee said.
