KUALA LUMPUR (May 25): Sime Darby Bhd (KL:SIME) more than tripled its earnings in the recently ended quarter from a year earlier thanks mainly to a one-off gain from a land sale while revenue shrank.

Net profit for the three months ended March 31, 2026 (3QFY2026) was RM654 million. The industrial-and-automotive company booked a gain of RM434 million from selling Malaysia Vision Valley land in Negeri Sembilan. That compares to RM193 million in the same quarter a year earlier.

Revenue for the quarter slipped 3.4% year-on-year to RM15.75 billion, dragged in part by lower sales of industrial equipment in Malaysia, a bourse filing showed.

"Our results this quarter reflect the continued resilience of our portfolio, even as we navigate a more complex operating environment,” said CEO Datuk Jeffri Salim Davidson. “Our core businesses of industrial equipment and automotive have held their ground against ongoing market pressures.”

Going forward, business conditions are anticipated to be subdued, Sime Darby cautioned. Still, results for the financial year ending June 30, 2026 is expected to be similar to the previous year, the company said.

Sime Darby, which represents brands such as BMW and Porsche, flagged slower consumer demand and heightened competition. Sales of mass market vehicles in Malaysia, meanwhile, remains resilient, the company noted.

The industrial division, which mostly sells Caterpillar branded heavy equipment, is expected to remain supported by long-term demand from Australia’s mining sector, particularly in equipment supply and servicing, Sime Darby said.

Net profit for the first nine months of FY2026 was RM1.44 billion versus RM1.3 billion in the same period a year earlier as lower average borrowings helped to cut finance costs, further boosted by higher electric vehicle sales in Singapore as well as higher margins and lower expenses in Hong Kong.

Cumulative revenue was barely higher year-on-year at RM52.76 billion against RM52.3 billion last year.

No interim dividend was declared.