KUALA LUMPUR (Feb 25): Capital A Bhd (KL:CAPITALA) is eyeing an exit from Practice Note 17 (PN17) status after the hefty gain from the disposal of its aviation business, part of its completed regularisation plan, lifted the group to a positive shareholders’ equity position.

The disposal gain of RM9.75 billion from the sale of its airline business saw Capital A’s net profit for the fourth quarter ended Dec 31, 2025 (4QFY2025) swell to RM10.2 billion, from a net loss of RM1.66 billion a year earlier, according to a bourse filing on Wednesday.

Quarterly revenue jumped 48.3% year-on-year to RM769.08 million from RM518.51 million.

For the full year, net profit swung to RM13.03 billion versus a net loss of RM501.25 million in FY2024, again mainly due to the aviation business disposal gain. Cumulative revenue was up 16.7% to RM1.99 billion from RM1.71 billion.

“The gain from the disposal has restored the group to positive equity of RM937 million, marking a clear financial reset. Now we look forward to PN17 uplift and drawing a firm line under the past few years,” Capital A chief executive officer Tan Sri Tony Fernandes said in a statement.

Capital A said its continuing operations — excluding its now-disposed aviation operations — “largely met” its internal targets.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) of RM443 million came in below the RM500 million to RM600 million range, while the RM3.4 billion revenue was marginally lower than the RM3.5 billion to RM4 billion guided range.

Meanwhile, the net operating profit (NOP) margin of 7% came in at the lower end of the target range of 7% to 10%, it noted.

No dividend was proposed for the financial year.

Capital A's continuing operation comprises its five operating units, namely maintenance, repair and operations unit Asia Digital Engineering (ADE), Teleport (logistics), AirAsia Move (travel platform), Santan (F&B) and AirAsia Next (brand licensing and digital intellectual property).

Looking to the ongoing fiscal year, Capital A said it has set its internal targets at RM3.8 billion for revenue, RM600 million for Ebitda and RM266 million for NOP margin.

“The group’s performance is contingent on each of the Capital A companies delivering against its respective assumptions,” the group noted.

Fernandes said the group is now ready for its next chapter of growth with renewed focus on the five tech-driven businesses it has built.

Shares in Capital A ended 1.5 sen or 2.54% higher at 60.5 sen, valuing the group at RM2.68 billion.