KUCHING: Sarawak-based property and infrastructure developer Ibraco Bhd saw its revenue ease 15.2% year-on-year (YoY) to RM163.6 million for Q2 ended June 30, 2026 (FY26)from RM193.0 million in Q2 FY25.
The moderation was primarily due to lower contributions from the Construction division, following the completion of several infrastructure projects in earlier periods.
The Property Development division remained the group’s largest contributor at RM83.5 million, up 8.6% YoY from RM76.9 million in Q2 FY25, representing 51.0% of total revenue, supported by continued take-up and steady progress from its ongoing property projects.
This was partly offset by the Construction segment, which reported revenue of RM61.3 million in Q2 FY26 compared to RM103.1 million in Q2 FY25, representing 37.5% of the group’s overall revenue.
The Manufacturing segment, which produces ready-mixed concrete and premix, and manufactures mild steel cement-lined (MSCL) pipes mainly for water infrastructure, more than doubled its revenue to RM11.1 million from RM4.7 million posted in Q2 FY25, a 137.1% YoY increase, representing 6.8% of total revenue.
The Quarry Operation segment recorded RM5.0 million in revenue, moderating from RM5.7 million in Q2 FY25, contributing 3.1% of overall revenue.
Meanwhile, the Others segment, comprising property holding and management as well as clubhouse operations, was broadly stable at RM2.7 million, largely unchanged from Q2 FY25.
On the back of a more favourable revenue mix, the group’s gross profit (GP) rose 5.9% YoY to RM39.5 million in Q2 FY26 from RM37.3 million in Q2 FY25, with GP margin improving to 24.1% from 19.3%, driven by the Property Development segment’s higher contribution.
Meanwhile, the group’s other income moderated to RM0.8 million in Q2 FY26 from RM20.4 million in Q2 FY25, with the latter including one-off compensation for land acquired by the government under the existing land code.
As a result, the group’s net profit was RM14.3 million in Q2 FY26, compared with RM30.5 million in Q2 FY25, which benefited from the one-off land compensation, with net profit margin at 8.7% in Q2 FY26 from 15.8% in Q2 FY25.
For 1H FY26, the Group’s revenue was RM324.4 million, down 14.0% from RM377.1 million in 1H FY25.
The Property Development segment contributed more, offsetting the softer performance from the Construction segment, as construction revenue moderated after the completion of several infrastructure projects.
The group’s net profit for 1H FY26 was RM27.7 million, compared with RM44.1 million in 1H FY25, the latter including higher other income of RM21.4 million from one-off land compensation.
Group managing director Datuk Chew Chiaw Han said despite ongoing global uncertainties, Malaysia’s steady domestic demand, supported by moderate gross domestic product (GDP) growth and continued development spending in Sarawak, provides a stable environment for the group moving forward.
“Our township-focused developments give us the flexibility to adapt our project launches and product offerings to market conditions, while continuing to meet buyer demand for integrated communities with strong connectivity, sustainable features and long-term investment value.
“Our key developments continue to progress well, including The NorthBank and Arden City in Sarawak, and Residensi NewUrban in Petaling Jaya, alongside our expansion within the Demak Laut Industrial Zone.
“Our vertically integrated operating model, which includes quarry operations, ready-mixed concrete, asphalt production and steel pipe fabrication, provides significant support to our Construction and Property Development divisions.
“From 2026 onwards, we expect a more balanced revenue contribution between our Construction and Property Development segments, anchored by key infrastructure projects such as the Second Trunk Road Package A1A in Kota Samarahan and the Kuching Urban Transportation System Blue Line Package 1.
“We were particularly encouraged by two milestones achieved recently at The NorthBank. On Aug 1, 2026, Ibraco became the first corporation to secure naming rights for an Autonomous Rapid Transit (ART) station adjacent to the development, officially designated as The NorthBank IBRACO Station.
“The improved connectivity arising from the ART network is expected to enhance accessibility to the development and support its long-term growth.
“This was followed by the groundbreaking of the Regency Specialist Hospital Kuching by HMI Group on Aug 10, 2026, a 300-bed smart tertiary hospital within the township targeted to commence operations in 2029, marking tangible progress in realising The NorthBank’s Live-Work-Education-Heal vision,” he said.
As of June 30, 2026, the group continues to be supported by its existing unbilled property sales and outstanding construction order book, providing forward earnings visibility.
With a well-diversified base across construction, property development and building materials, the group remains focused on executing its ongoing projects and pursuing new opportunities across East and West Malaysia.
