KUALA LUMPUR (April 23): Pantech Global Bhd (KL:PGLOBAL), a steel pipe and pipe fitting maker, ended the final quarter of its latest financial year with lower earnings, on the absence of a one-off gain, as well as operating expenses weighing on its bottom line.

Net profit for the three months ended Feb 28, 2026 (4QFY2026) fell 80.7% to RM11.39 million from RM58.96 million in 4QFY2025, a high-base quarter boosted by a one-off gain of RM52.34 million from a "bargain" acquisition — fair value of net asset exceeded purchase consideration — recognised in January 2025, according to the company’s bourse filing on Thursday.

Quarterly revenue was up 65% year-on-year (y-o-y) to RM136.29 million, driven by higher selling prices, as US tariffs were passed through to US-based customers, as well as three full months of operation of Pantech Steel Industries Sdn Bhd and Pantech Stainless & Alloy Industries Sdn Bhd.

Operating expenses were up 67.5% to RM120.09 million.

Excluding the one-off gain and assuming full three months of the acquired unit’s operations, its 4QFY2025’s net profit would have stood at RM15.14 million and revenue at RM118.04 million. Its 4QFY2026’s net profit would be a 24.8% decrease against the pro-forma result, and revenue would be up 15.46%.

For the full year FY2026, net profit dropped 21.8% y-o-y to RM46.12 million, while revenue surged over six-fold to RM516.29 million from RM82.58 million in FY2025.

Again, excluding the one-off gain and assuming full three months of the acquired unit’s operations, FY2026’s net profit would be down 15.58% compared with FY2025’s pro-forma net profit of RM54.63 million, while revenue would be up 2.24% from RM505 million.

The company declared a second interim dividend of two sen per share for the quarter under review, payable on June 19.

Demand remains steady, Pantech Global said, underpinned by consistent demand from its customer base.

“Management remains proactive in monitoring cost structures and implementing efficiency measures to mitigate the impact of rising operating costs,” it added.

Citing its competitive advantages and current stable operations, Pantech Global is cautiously optimistic about the forthcoming financial year, barring unforeseen circumstances.

Shares in Pantech Global ended one sen or 2.08% lower at 47 sen, valuing the company at RM387.01 million. Against its March 2025 listing price of 68 sen, the stock has fallen by 30.9%.