KUALA LUMPUR: HSS Engineers Bhd, an established engineering and project management consultancy group with extensive experience in delivering major infrastructure projects across Malaysia and the region, reported a marked improvement in profitability for the Q1 ended March 31, 2026 (FY26).
The group recorded a 127.4% year-on-year profit-before-tax growth to RM5.6 million, while profit after tax surged 151.8% to RM3.5 million, on the back of revenue of RM46.0 million.
The company achieved stronger profitability mainly by improving profit margins through a more favourable project mix and enhanced operational efficiency.
In terms of segmental performance, project management continued to be the group’s largest revenue contributor, generating RM21.3 million, which accounted for 46.2% of total revenue. Engineering design brought in RM11.7 million, and construction supervision brought in RM10.6 million.
Meanwhile, digital services revenue nearly doubled to RM0.7 million, supported by contributions from the EDOTCO project, in line with the group’s strategy to expand into higher-value, technology-enabled engineering solutions.
Geographically, Malaysia remained HSS Engineers’ core market, contributing RM42.6 million, or 92.6% of total revenue, underscoring the group’s strong domestic presence.
The Philippines led overseas revenue contributions at RM2.8 million, followed by India at RM0.6 million, reflecting HSS Engineers’ regional footprint.
As of March 31, 2026, the group’s unbilled order book stood at RM2.1 billion, providing earnings visibility for up to 8 years.
Project management accounted for 80.5% of the total order book, followed by engineering design at 13.3% and construction supervision at 5.8%.
In addition, the group’s active tender book stood at RM525.0 million, supporting continued opportunities for order replenishment.
Commenting on the group’s performance and outlook, executive vice chairman Tan Sri Ir. Kuna Sittampalam said the group remained well-positioned to benefit from Malaysia’s accelerating infrastructure development cycle.
He said the Budget 2026’s RM81 billion development expenditure allocation, complemented by approximately RM50 billion from government-linked investment companies and government-linked companies, brings total estimated development-related spending to RM131.3 billion.
It is expected to create a highly favourable operating environment across the transportation, water, rail, and renewable energy sectors.
“The group continues to execute key national infrastructure projects, including East Coast Rail Link, Pan Borneo Sabah Highway (Phase 1A), Klang Valley Double Tracking Phase 2, and multiple PAAB water infrastructure assignments.
“Internationally, HSS Engineers is expanding its presence through strategic consultancy roles in India and the Philippines and is progressing two renewable energy projects, a 95MW large-scale solar plant project in Hilir Perak and a 29.99MW solar plant project in Kedah, which are expected to contribute positively to long-term recurring income,” he said.
Looking ahead, the group remains encouraged by the strong infrastructure spending outlook in Budget 2026 and expects continued opportunities arising from public infrastructure investments, private-sector participation, and technology-enabled engineering solutions.
