KUALA LUMPUR (Feb 25): Electronic manufacturing services provider NationGate Holdings Bhd (KL:NATGATE) reported a 90% drop in its fourth-quarter net profit from a year earlier, dragged down by a sharp contraction in its data computing segment.

Net profit for the quarter ended Dec 31, 2025 (4QFY2025) fell to RM6.37 million from RM64.06 million in 4QFY2024, as revenue tumbled 60% to RM1.2 billion from RM3.03 billion, its latest results bourse filing showed.

The group attributed the decline primarily to lower contributions from its data computing division. The segment's revenue reached only RM1.01 billion in 4QFY2025, down by nearly two thirds from the RM2.86 billion recorded in 4QFY2024.

Despite the softer quarter, the group declared a fourth interim dividend of 0.25 sen per share and a special single-tier dividend of one sen per share. This 1.25 sen per share raises the full-year payout to two sen per share, same as FY2024.

For the full FY2025, while revenue surged 44.4% to RM7.61 billion from RM5.27 billion in FY2024 on higher data computing revenue, net profit shrank to RM125.06 million from RM160.19 million. The group's bottom line was weighed down by a significant reduction in foreign exchange gains, and a one-off asset write-off recorded earlier in the year.

On FY2026, the group expressed cautious optimism. It expects to benefit from a projected recovery in the global semiconductor sector, with strong demand for logic and memory products, and sustained momentum for artificial intelligence (AI), data centres and electric vehicle (EV) applications.

“The group remains well-positioned to benefit from customer diversification strategies and growth in the AI, EV and industrial-automation markets,” it said.

NationGate shares dipped one sen to close at RM1.01 sen on Wednesday, valuing it at RM2.29 billion.