KUALA LUMPUR: Integrated engineering solutions provider, Kelington Group
Bhd continued its momentum and delivered 33.0% year-on-year (YoY) revenue growth to RM404.9 million for Q4 ended Dec 31, 2025 (FY25), up from RM304.4 million previously.
This improvement was mainly driven by stronger contributions from Malaysia and Singapore, as well as revenue from
Germany, where projects secured in August 2025 began contributing during the quarter.
Gross and net profit margins remained relatively stable at 21.7% and 12.5%, respectively, resulting in net profit for the quarter of RM50.5 million.
This marks the highest quarterly net profit in the group’s history.
For FY25, Kelington delivered revenue of RM1.27 billion, broadly in line with the RM1.27 billion reported in FY24.
The performance was supported by the ramp-up of new projects in Singapore and partially offset by lower contributions from Malaysia and China due to the timing gap between the completion of existing projects and the commencement of new ones.
FY25 net profit increased by 19.3% year-on-year to RM151.2 million, surpassing the previous record high of RM126.8 million in FY24.
Net profit margin improved from 9.8% to 11.9%, primarily driven by the group’s strategy of prioritising projects with higher margin potential.
The advanced engineering division remained as the group’s primary revenue contributor, generating RM847.7 million, 67% of total revenue.
This was followed by the general contracting segment, which contributed RM202.2 million (16%), and process engineering at RM93.4 million (7%).
The remaining 10% was contributed by the industrial gases division, which recorded
revenue of RM126.3 million.
Geographically, revenue contribution from Malaysia stood at 36%, followed closely by Singapore at 35%, China at 22% and Taiwan at 2%.
The group also saw new revenue contribution in the financial year from Germany, accounting for 2% of revenue.
Commenting on the group’s financial performance, group CEO Lim Seng Chuan said the strong results mark its fifth consecutive year of record net profit.
“Our decision to focus on higher margin projects and geographical diversification has proven beneficial, and we look forward to continuing this momentum in coming years.
“The outlook for our engineering division remains positive and strong, driven by growing demand in the semiconductor industry, which our group is well-positioned to capture.
“During FY25, the group has secured RM1.3 billion in new orders, surpassing the previous year’s orders and strengthening our earnings visibility. Furthermore, we are actively tendering for more projects with our tender book amounting to over RM4.0 billion.
“The anticipated implementation of a carbon tax, together with other supportive policy measures, is expected to accelerate the adoption of low-carbon solutions across the industry. In response, we are strengthening our sustainable engineering segment to align with regional decarbonisation priorities and position ourselves as an early mover in this space.
“Following this, we have entered into strategic collaborations with industry partners and academic institutions to build technical capabilities and execution readiness. Further initiatives and partnerships are being explored to deepen the group’s participation in the evolving energy transition landscape and unlock new growth avenues.
“Moving forward, we will continue to explore more opportunities in new and existing markets and are confident in our ability to further expand our capabilities and our foothold in the global market.”
Lim concluded.
The group’s balance sheet remains strong, with total cash of RM405.4 million, well above total borrowings of RM207.4 million, reflecting a healthy net cash position.
During this quarter, the board declared a fourth interim dividend of 2.5 sen per share and a special interim dividend of 1.5 sen per share, bringing the total payout to 4.0 sen per share.
This brings total dividends declared for FY25 to 13 sen per share, amounting to RM100.3 million, which represents 66.4% of the group’s net profit for the financial year.
As of Dec 31, 2025, Kelington maintained a solid outstanding order book of RM1.4 billion, supported by a healthy tender pipeline of RM4.6 billion, providing strong earnings visibility going forward.