KUALA LUMPUR: Kinergy Advancement Bhd posted a 48.8% year-on-year (YoY) revenue increase to RM102.0 million for Q1 ended March 31, 2026 (FY26), anchored by its sustainable energy solutions (SES) segment, which accounted for 75% of total first quarter revenue and continued to execute with consistency.
Profitability improved in line with stronger operational execution, with profit before tax (PBT) rising 22.0% YoY to MYR8.6 million and profit after tax (PAT) up 20.4% to MYR7.4 million.
Operating profit also grew by 27.2% during the quarter, to RM11.97 million. The quarter’s financial profile reflects continued orderbook conversion into earnings, further reaffirming a sustained execution cadence built over prior periods.
At the segment level, SES delivered a 123% YoY increase in revenue to RM76.3 million, with segment profit growing 31.2% YoY to RM11.1 million.
Progressive billings from key PETRONAS-linked projects in Sabah and Labuan underpin near-term revenue visibility and support the group’s 2H earnings outlook.
Kinergy is building towards a dual-engine model: a project-execution engine through its established EPCC capabilities, and a recurring-income engine anchored by concession assets and long-term energy contracts.
This structural balance is intended to temper the cyclicality inherent in project-driven revenue, improve earnings resilience over the medium term, and enhance cash flow visibility.
This, in turn, strengthens the foundation for scalable growth, while providing greater downside protection and supporting long-term value accretion across the energy value chain.
Executive deputy chairman and group managing director Datuk Lai Keng Onn said with steady quarter-on-quarter progress, the group sees continued momentum and confirmation that SES has become a more meaningful part of its business.
“As we advance our energy infrastructure journey, we are beginning to see the early phase of orderbook conversion into revenue, reflecting the realisation of our execution strength.
“Our ambition is to build a differentiated position in the energy space – one that does not compete as a standalone solution, but instead complements and strengthens the broader ecosystem we operate in. This is why execution remains our foundation.
“Despite the challenges over the past eight years, we remain disciplined and focused on scaling a more balanced and sustainable energy platform – one that supports national aspirations while staying true to our long-term vision and mission,” he said.
The group continues to demonstrate financial prudence alongside growth execution, maintaining a disciplined approach to capital management and funding its expansion initiatives.
This is reflected in a current debt-to-equity ratio of 0.8x as at Q1 FY26, which remains well within its internal policy ceiling of 2.5x.
Kinergy expects to enter 2H FY26 with stronger momentum, supported by disciplined EPCC selectivity amid shifting sector dynamics and an ongoing transition towards a more balanced portfolio mix.
Anchored by a combined RM3.8 billion pipeline comprising an RM1.0 billion order book and an RM2.8 billion active tender book, the group continues to convert opportunities into execution, delivery, and earnings realisation.
