PETALING JAYA: HSS Engineers Bhd, an engineering and project management consultancy group with extensive experience in major infrastructure projects across Malaysia and the region, delivered stronger profitability for the six-months ended June 30, 2026 (H1’26), underpinned by improved operating performance and stronger earnings momentum in the second quarter (Q2’26).
For H1’26, profit before tax (PBT) increased 26.6% year-on-year (YoY) to RM14.9 million, while net profit rose 29.8% to RM10.6 million.
Gross profit increased 4.2% YoY to RM33.5 million, while profit from operations grew 32.6% to RM17.2 million.
The improvement in profitability was achieved on revenue of RM101 million, demonstrating the group’s ability to deliver stronger earnings as projects progressed through different execution and revenue-recognition phases.
Momentum strengthened in Q2’26, with revenue increasing 19.4% quarter-on-quarter (QoQ) to RM54.9 million, while gross profit rose 27.7% QoQ and PBT surged 68.7% QoQ to RM9.4 million.
Net profit for the quarter stood at RM6.8 million, up 3.9% YoY.
The sequential improvement reflects stronger revenue recognition and operating momentum across the group’s portfolio as ongoing projects progress through their respective delivery phases.
Project management remained the group’s largest revenue contributor in Q2’26, increasing 2.2% YoY to RM24.6 million, supported by consulting services for the Davao Public Transport Modernisation Project in the Philippines.
Revenue from Malaysia increased 2.8% YoY to RM50.7 million for the quarter.
As of June 30, the group maintained a sizeable unbilled order book of RM2.2 billion, providing earnings visibility of up to eight years.
Project management accounted for approximately 80% of the total order book, followed by engineering design at 13.1% and construction supervision at 6.5%, reflecting the group’s established capabilities across the infrastructure project lifecycle.
The group maintained an active tender book of about RM480 million, providing further opportunities for order replenishment and supporting its medium-term growth pipeline.
HSS Engineers remains strategically positioned to participate in Malaysia’s continued infrastructure development across transportation, rail, water and renewable energy, while progressively expanding its regional presence and technology-enabled capabilities in digitalisation and artificial intelligence.
Commenting on the group’s performance and outlook, HSS Engineers executive vice-chairman Tan Sri Kuna Sittampalam said the H1’26 performance demonstrates the resilience of HSS Engineers’ business model and, importantly, the strengthening earnings momentum across the group.
“The 29.8% growth in net profit, together with the significant QoQ improvement in Q2 FY26, provides us with a strong platform as we move into the second half of the year.
“Looking ahead, our RM2.2 billion unbilled order book, providing earnings visibility of up to eight years, gives us a strong foundation for sustainable growth.
“Our immediate priority is to continue converting this substantial order book into revenue and earnings through disciplined execution and timely project delivery, while actively replenishing our pipeline through our approximately RM480 million tender book,“ he said.
Kuna said the group remains positive on Malaysia’s infrastructure outlook, particularly across transport and rail, water, ports and renewable energy, where HSS Engineers has established capabilities and a strong track record.
“At the same time, we are positioning the group for its next phase of growth by expanding our regional presence and developing higher-value capabilities in digitalisation, AI-enabled solutions and other technology-driven engineering services.
“Our regional strategy will remain selective and disciplined. We intend to build on our growing presence across markets such as India, Philippines, Indonesia, Cambodia and Bangladesh, leveraging our engineering expertise and strategic partnerships to pursue opportunities where HSS can deliver differentiated value.
“With a sizeable order book, an active tender pipeline and multiple growth platforms, we believe HSS Engineers is well positioned to build on the momentum achieved in the first half.
“Our focus remains clear: strengthen earnings, secure quality new orders, expand our regional and technology capabilities, and create sustainable long-term value for our shareholders.”
