SENAI: Cape EMS Bhd reported a substantial top-line growth and a sharp recovery in operating margins for Q3 ended March 31, 2026 (FY26).
For the quarter, the group recorded revenue of RM107.7 million, a 48.8% increase from RM72.4 million in the corresponding quarter last year.
Profit before tax (PBT) rose 32.3% to RM4.8 million, while profit after tax (PAT) grew 26.4% to RM4.2 million.
The primary driver of this performance was a structurally improved product mix, spearheaded by the group’s wholly-owned US subsidiary, iConn Inc.
This strategic diversification into higher-value engineering is actively replacing traditional assembly volumes, translating into a stronger operational baseline for the quarter.
For the cumulative nine months of FY26, Cape EMS posted revenue of RM288.7 million.
PATAMI stood at RM15.86 million, generating basic earnings per share of 1.60 sen.
Managing director and group CEO Christina Tee Kim Chin said Q3 results validate the operational reset the group initiated.
“The concrete improvement in our bottom line proves that our pivot toward higher-value engineering is working.
“iConn is driving a much healthier product mix, particularly in the US market. We are actively moving away from traditional, lower-margin assembly and dedicating our capital to the Cape 2.0 mandate—focusing strictly on advanced electronics, energy, AI, data centre infrastructure, BESS, and EV mobility,” she said.
The group’s Cape 2.0 roadmap operates across four core pillars designed to capture these high-growth structural trends.
The engineering manufacturing solutions segment focuses on advanced electronics and sub-micron CNC precision engineering for the industrial automation and semiconductor sectors.
The battery energy storage systems (BESS) segment targets opportunities in energy storage, EV mobility, and EPCC.
The IMN segment, led by iConn, continues to scale its virtual manufacturing platform to support data centre infrastructure, AI workloads, and medical and life science customers.
Finally, the wireless IoT segment aims to capture rising regional demand for private wireless networks.
Regarding recent legal proceedings involving its subsidiary, Cape Manufacturing (M) Sdn Bhd, and Aeronas Aerocraft Sdn Bhd, the group reiterates that the dispute stems from an exploratory, non-binding Memorandum of Understanding.
Cape EMS disputes the speculative claims in their entirety and confirms the matter is not expected to have any material adverse impact on the group’s operations, financial stability, or business continuity.
