KUALA LUMPUR: Kinergy Advancement Bhd’s profit-before-tax (PBT) rose 31.5% YoY to RM19.2 million for Q2 ended June 30, 2026 (FY26), while revenue stood at RM211.4 million (+27.1% YoY).
Total liquid assets grew 43.6% to RM168.8 million, and net gearing was halved to 0.25 times from 0.49x.
This performance extends Kinergy’s track record of double-digit YoY earnings growth, with reported net profit growing at double-digit rates in every quarter since Q1 FY24.
More importantly, earnings growth is increasingly being accompanied by stronger liquidity and balance-sheet capacity, giving the group greater flexibility to execute and scale its three-pillar energy platform.
For Q2 FY26, revenue rose 11.9% YoY to RM109.4 million, PBT increased 40.3% to RM10.6 million, and profit-after-tax and minority interest (PATAMI) grew 39.5% to RM9.1 million.
1H FY26 PATAMI rose 29% to RM16.4 million, with basic earnings per share improving to 0.75 sen.
Growth remained concentrated in the sustainable energy solutions (SES) segment, which grew 50.5% YoY to RM170.7 million and now accounts for more than 80% of group revenue, driven by active execution of specialised energy EPCC projects in Sabah and Labuan.
Traditional Engineering activity was lighter, at RM40.4 million for the half, as legal M&E projects reached end-stage cost recognition but its tender pipeline recovered sharply to RM383.0 million from RM104 million in the preceding quarter, pointing to a trough rather than a structural decline.
This quarter also marked improved financial flexibility.
Operating profit before working capital movements grew 12.5% YoY to RM29.5 million, while RM41.5 million of RE asset value was redeployed through the partial monetisation of Jati Cakerawala Sdn Bhd, with Kinergy retaining 51% control and continued economic participation.
Combined with a RM4.1 million associate dividend, this lifted cash and bank balances to RM107.8 million and total liquid assets to RM168.8 million.
Year-to-date, with stronger liquidity and lower leverage, Kinergy has greater financial flexibility to scale and deepen its foothold across its three growth pillars.
Executive deputy chairman and group managing director Datuk Dr Lai Keng Onn said this 1H shows Kinergy converting its Engineering foundation into two things simultaneously – recurring earnings growth and balance sheet capacity.
“Halving our gearing while growing PBT by more than 30% gives us genuine flexibility to fund our order book and tender pipeline on our own terms, rather than being constrained by them.
“Every one of our three segments – EPCC, RE (SES) and Independent Power Producer (IPP) – draws on the same engineering discipline we’ve built over nearly three decades, and each is now reaching a scale where it deserves to be assessed against its own listed-peer benchmark rather than a single blended Group multiple,” he said.
Forward visibility remains substantial. As of June 30, 2026, Kinergy’s secured order book stood at approximately RM1.14 billion (RM93 million Engineering, RM1.05 billion SES), against an active tender pipeline of RM3.08 billion (RM383 million Engineering, RM2.70 billion SES) – a pipeline coverage of roughly 2.7 times the current order book, reaffirmed by a balance sheet now carrying the liquidity to pursue it.
The group continues to evaluate larger-scale RE opportunities, including large-scale solar, Battery Energy Storage System (BESS), and adjacent infrastructure opportunities linked to data centres.
This broadens Kinergy’s participation across the energy value chain, refreshes its opportunity pipeline, and creates multiple demand-led growth pathways across its three core pillars – EPCC, RE (SES) and IPP.
Kinergy closed the half from a position of greater strength, with earnings growing, liquidity expanding, leverage falling, and order book visibility building.
With RM41.5 million of RE asset value redeployed across its three growth pillars, these fundamentals are converging to strengthen Kinergy’s ability to build, deliver and scale from the engineering foundation across the energy value chain.
