KUALA LUMPUR: Integrated engineering solutions provider Kelington Group Bhd delivered a net profit of RM41.3 million for Q2 ended June 30. 2026 (FY26), a 25.7% higher than the RM32.9 million achieved in the same quarter of FY25.
Quarterly revenue came in at RM344.4 million, up 22.1% year-on-year (YoY) from RM282.0 million.
This was supported by higher contributions from all core segments, including advanced engineering (ultra high purity), process engineering, advanced industrial infrastructure, and industrial gases, due to increased project activities in Singapore, Malaysia, Taiwan, and Germany.
The group remains committed to rewarding shareholders and has announced a second interim single-tier dividend of 3.0 sen per ordinary share for the financial year ending Dec 31, 2026 (FY26), amounting to RM26.5 million.
Including this, total dividends declared for FY26 stood at 6.0 sen per ordinary share or RM52.8 million, equivalent to 73.6% of the group’s 1H FY26 net profit.
Commenting on the group’s financial performance, CEO Lim Seng Chuan said the group’s continued growth momentum, having secured RM1.23 billion in new orders within the first half of 2026 alone, nearly matches the RM1.25 billion it secured across the twelve months of 2025.
“This reflects sustained demand across our markets and our continued ability to deliver to the standards our customers expect,” he said.
SEMI forecasts global wafer fab equipment sales to grow 23.2% to US$165.9 billion in 2026 and towards US$229.5 billion by 2028, underscoring the scale of opportunity ahead.
“We are tendering actively across our existing and new markets to capture this, staying disciplined on the projects secured and prioritising those that meet our margin expectations,” he said.
As of June 30, 2026, Kelington’s outstanding order book stood at RM2.04 billion, providing strong earnings visibility, while its tenderbook of RM7.50 billion reflects a significant pipeline of potential opportunities.
Within the industrial gases segment, Kelington continues to pursue new investment opportunities.
On Aug 5, 2026, the group announced a US$29.3 million, or approximately RM120 million investment, to develop a plant for a 300-tonne-per-day air separation unit in Maharashtra, India.
Targeted for completion by Q3 of 2028, the plant will establish the group’s first industrial gas production platform in India, diversify its revenue base and position Kelington to capture growing demand from Maharashtra’s expanding industrial sector.
The group is also expanding its sustainable engineering initiatives, including a broader carbon capture and storage (CCS) study with Petronas CCS Solutions Sdn Bhd to cover a Satellite CO₂ Terminal, while evaluating opportunities in green hydrogen and bio-compressed natural gas.
These initiatives position Kelington to participate in Malaysia’s developing carbon capture and carbon market ecosystem.
For the six-month period (1H), Kelington recorded a net profit of RM71.7 million on the back of RM614.8 million of revenue.
1H FY26 net profit margin also improved from 10.8% to 11.7%, supported by the group’s favourable project mix with a focus on higher-margin projects.
Advanced engineering (ultra high purity) division continues to be the core business segment, contributing RM401.7 million, or 65.3% of total revenue in 1H FY26.
This was followed by the Advanced Industrial Infrastructure segment, formerly known as General Contracting, which contributed RM111.2 million (18.1%), Industrial Gases with RM62.8 million (10.2%), Process Engineering with RM36.0 million (5.9%), and finally, Equipment and Materials with RM20.1 million (3.3%).
Geographically, Singapore is the group’s largest market, accounting for 40.7% of total revenue, mainly supported by strong contributions from the advanced engineering (ultra high purity) segment.
Malaysia contributed 33.9%, followed by China at 15.0%, Taiwan at 4.4%, and Germany at 2.3%. The remaining 3.7% came from India, the Philippines and other markets.
The group maintained a strong balance sheet, with a net cash position of RM110.7 million as of June 30, 2026.
Total cash stood at RM328.6 million, exceeding total borrowings of RM217.9 million.
This healthy financial position provides the group with the flexibility to fuel future business expansion while continuing to deliver value to shareholders.
As of June 30, 2026, Kelington maintained an outstanding order book of RM2.04 billion, supported by a tenderbook of RM7.50 billion, providing strong earnings visibility moving forward.
