PETALING JAYA: Boustead Heavy Industries Corporation (BHIC) returned to profitability in the first quarter ended March 31, 2026 (Q1’26), driven by improved cost management and stronger contributions from joint venture companies.
For the quarter, the group recorded revenue of RM29.7 million, compared with RM44.5 million in the corresponding quarter last year, reflecting lower activity following the completion of major submarine-related projects.
Despite the lower revenue, BHIC delivered a profit before tax of RM0.5 million, a significant turnaround from a loss before taxation of RM4.8 million previously. Profit after tax stood at RM0.1 million, compared to a loss of RM5.2 million in Q1’25.
The improvement in earnings was primarily driven by lower operating costs and improved performance from joint venture entities, which contributed RM1.6 million in profit, compared to a loss contribution of RM1.2 million in the same period last year.
From an operational perspective, the group recorded a substantially narrower earnings before interest, taxation, depreciation and amortisation loss of RM0.5 million, compared to RM3.2 million previously, reflecting stronger cost discipline and optimisation efforts.
BHIC CEO Feroz Razi Ramli said, “Our first-quarter performance reflects a disciplined approach to cost management and a continued focus on operational efficiency. While revenue moderated following the completion of key submarine-related works, the group has demonstrated resilience by returning to profitability. The positive contribution from our joint ventures, particularly in the aerospace segment, underscores the importance of our diversified portfolio and collaborative model. We remain focused on strengthening our core capabilities while expanding into adjacent defence segments.”
Boustead Holdings Bhd group managing director Datuk Indera Dr Ahmad Sabirin Arshad said, “BHIC’s performance reflects the importance of building a resilient and sustainable defence industry ecosystem that extends beyond individual projects and business cycles.
“As part of the Boustead and LTAT ecosystem, BHIC continues to play a strategic role in supporting national defence capabilities while contributing towards long-term value creation for LTAT, ultimately benefiting members of the Armed Forces and veterans.
Moving forward, the group remains focused on strengthening strategic partnerships, enhancing industrial capabilities and supporting Malaysia’s broader defence industrialisation agenda in line with national priorities.”
Barring unforeseen circumstances, BHIC expects operating conditions to remain stable in 2026 as the group advances its strategic initiatives, invests in capability development and strengthens its participation across the broader defence ecosystem.
