KUALA LUMPUR: Integrated engineering solutions provider Kelington Group Bhd posted a net profit of RM41.1 million in the third quarter (Q3) ended September 30, 2025 (FY25), up 25.0% year-on-year (YoY) from RM32.9 million a year ago.
Net profit margin improved to 13.0% from 10.7% in Q3 FY24, as the group benefited from a more favourable project mix and lower unrealised foreign exchange losses.
Quarterly revenue came in at RM316.4 million, 3.0% higher than RM307.3 million in Q3 FY24, lifted mainly by stronger contributions from the group’s Singapore operations.
The Industrial Gas segment, however, saw a softer performance during the quarter.
For the nine-month (9M) of FY25, Kelington recorded a net profit of RM100.7 million on revenue of RM868.7 million.
Segmentally, the Advanced Engineering segment remained the largest contributor, generating RM589.3 million or 66.2% of total revenue.
This was followed by general contracting (RM132.5 million, 14.9%), industrial gases (RM96.2 million, 10.8%), and process engineering (RM51.7 million, 5.8%), with the remaining revenue derived from equipment and materials.
Segmental percentages stated before accounting for consolidated adjustments.
Commenting on the group’s financial performance, CEO Ir. Raymond Gan said with a healthy pipeline of opportunities, the group has been more selective in pursuing higher-margin projects, which has translated into improved profitability.
He added that the group’s expansion plans are progressing well, supported by sustained demand and geographical diversification.
“In the first nine months, we have secured RM1.1 billion in new project wins, surpassing the total job wins last year. This reflects our strong execution capabilities and our clients’ continued trust.
“A key highlight this quarter was our first project win in Dresden, Germany, marking our entry into the European market. So far, the group has secured accumulated orders totalling RM157 million from the client in Germany, with more orders expected to continue through to 2027.
“This win also allows us to establish a foothold in the European market in the future. We continue to explore opportunities in new markets, supported by growing demand from the surge in semiconductor wafer fab developments globally,” he said.
He also noted that Kelington is expanding its capabilities in sustainable engineering, in line with the global ESG transition.
“With the introduction of a carbon tax for the iron, steel, and energy sectors expected in 2026, we foresee growing demand for solutions such as carbon capture, utilisation and storage (CCUS). At the same time, we are exploring opportunities in green hydrogen and bio-compressed natural gas (Bio-CNG) derived from organic waste,” he said.
“To accelerate our entry into these emerging segments, we have signed several memoranda of understanding (MoUs) with industry players and educational institutions to leverage our technical expertise and explore joint development opportunities.”
The group maintained a strong financial position with total cash of RM471.0 million, exceeding total borrowings of RM178.4 million.
In line with its performance, the board declared a third interim dividend of 2.5 sen and a special interim dividend of 1.5 sen per share, bringing the total payout for this round to 4.0 sen per share, amounting to a total payout of RM31.0 million for the financial year ending December 31, 2025 (FY25).
Including this, the total dividends declared for FY25 stand at 9 sen per share or RM68.3 million, representing 67.8% of the group’s 9M FY25 net profit.
As of September 30, 2025, Kelington maintained a solid outstanding order book of RM1.6 billion, supported by a healthy tender pipeline of RM4.6 billion, providing strong earnings visibility going forward.
