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WCE Holdings Berhad (WCEHB) has reported a robust start to the financial year, with revenue for the first quarter ended 30 June 2025 (1Q FY2026) rising 421 percent to RM393.8 million, compared to RM75.6 million in the same quarter last year.
In a statement today, the Klang-based expressway developer attributed the performance to “higher construction activity under both the concession and construction segments, particularly in Rest and Service Area (RSA) works and Sections 3 and 7 of the West Coast Expressway (WCE),” as well as “increased toll collection following additional sections in Selangor, i.e. Sections 1 and 2, which commenced toll collection in September 2024 and June 2025 respectively.”
Toll collection grew 61 percent quarter-on-quarter to RM42.0 million, with average daily traffic also showing marked growth following the opening of new sections. Group EBITDA rose 84 percent year-year to RM33.4 million, up from RM18.1 million in 1Q FY2025, “reflecting continued operational profitability.”
Loss before tax remained unchanged at RM34.6 million, mainly due to higher interest costs of RM57.6 million during the quarter, compared to RM48.8 million a year earlier.
This increase reflects the accounting treatment of interest expenses on completed sections in accordance with MFRS 123.
Nevertheless, the Group narrowed its loss from RM42.9 million in the preceding quarter (4Q FY2025), indicating “a gradual improvement in financial performance.”
The concession segment remained the Group’s main revenue contributor, with toll-related income climbing 451 percent year-on-year.
Toll revenue alone rose 710 percent over the same period. Construction income within the concession segment also recorded a 710 percent quarter-on-quarter increase, supported by intensified works on RSAs and the remaining WCE sections.
While operational metrics improved, the concession segment continued to register a loss before tax due to ongoing interest charges on completed assets.
Meanwhile, the construction arm, WCE Maju Sdn Bhd, recorded a profit before tax of RM0.5 million in 1Q FY2026, reversing a RM0.5 million loss in the corresponding quarter last year. Construction revenue rose 230 percent year-on-year, underscoring “heightened project execution during the current period.”
The Group noted strong momentum from the ongoing roll-out of the West Coast Expressway, a 233-kilometre build-operate-transfer project stretching from Banting, Selangor to Taiping, Perak, with a concession period of up to 60 years from 20 December 2013.
As of 30 June 2025, eight out of eleven sections are operational, spanning 180 km across Selangor and Perak.
The Perak alignment, comprising 120 km, is now fully completed. Operational Perak sections include Hutan Melintang to Teluk Intan, Kampung Lekir to Changkat Cermin, Changkat Cermin to Beruas, and Beruas to Taiping Selatan.
In Selangor, Sections from Banting to SKVE, SKVE to KESAS, the New North Klang Straits Bypass to Bandar Bukit Raja Utara, and from Bandar Bukit Raja Utara to Assam Jawa are now active.
“The Group anticipates that continued ramp-up in toll collections will further strengthen cash flows and operating results,” WCEHB stated.
“Full completion of the WCE is expected to drive revenue growth beyond financing costs, enabling a transition to sustained profitability.”
WCE Maju is currently undertaking projects with a total contract value of approximately RM800 million.
These include access works from the WCE to the Seri Langat mixed development, Section 7B from Assam Jawa Interchange to Tanjung Karang Interchange, and the construction of ten RSAs along the highway.
“The Group remains focused on timely project delivery and quality execution to support sustainable growth in the construction segment,” it added. - August 18, 2025