KUALA LUMPUR (Aug 20): YTL Corp Bhd’s (KL:YTL) fourth-quarter net profit fell 47.1% from the same quarter a year ago, weighed by compressed retail, pool, and vesting margins at its energy business, and its construction segment slipping into the red following the completion of works under a major contract — the Gemas Rail project.
Net profit for the three months ended June 30, 2026 (4QFY2026) fell to RM327.56 million from RM618.91 million for 4QFY2025, though revenue rose more than 15% to RM8.81 billion from RM7.65 billion, its bourse filing showed.
The topline growth is driven by stronger cement sales, higher tariff rates in its water and sewerage business, and initial revenue recognition from its artificial intelligence cloud services operations.
An interim dividend of six sen per share payable on Oct 23 was declared with the latest results, up from five sen in the corresponding quarter last year.
For the full year ended June 30 (FY2026), the group reported a 26.8% drop in net profit to RM1.44 billion from RM1.97 billion for FY2025, despite revenue edging up 2.7% to RM31.6 billion from RM30.8 billion.
The weaker cumulative earnings were due to compressed margins and fewer power generation units sold in its energy business, and again losses in its construction segment. This is reflected in the 48% drop in the fourth-quarter net profit of its 52.46%-owned YTL Power International Bhd (KL:YTLPOWR) to RM423.5 million from RM817.7 million, even as revenue rose nearly 14% to RM6.32 billion from RM5.55 billion.
As a result, YTL Power’s full-year net profit fell 33.7% to RM1.69 billion from RM2.55 billion, while revenue edged up 1% to RM22 billion from RM21.8 billion. The subsidiary declared a second interim dividend of four sen per share, payable on Oct 23.
In addition, losses at YTL Corp's property investment and development segment also weighed on the group's earnings, together with higher costs and losses in management services.
These were mitigated by higher contribution from its cement business under its 59.25%-owned Malayan Cement Bhd (KL:MCEMENT), where fourth-quarter net profit jumped 34.8% to RM222.9 million from RM165.4 million, as revenue rose 16.6% to RM1.29 billion from RM1.11 billion.
Malayan Cement concluded the year with record top- and bottom-line, as net profit grew 34.3% to RM903.2 million from RM672.4 million, while revenue climbed 10.3% to RM4.99 billion from RM4.53 billion. It declared a second interim dividend of nine sen per share, payable on Oct 2.
On prospects, YTL Corp said it remains proactive in keeping its construction projects on schedule and replenishing its order book despite a competitive operating environment.
It also said construction of its 600MW gas and hydrogen-ready power plant in Pulau Seraya is expected to be completed in December 2027.
The group also plans to expand the Kulai green data centre park’s capacity to 1,200MW, of which 298MW has been contracted.
It also expects resilient demand in the cement segment, as well as a stable hospitality sector.
YTL shares rose 21 sen or 9.5% to settle at RM2.43 on Thursday, giving the group a market capitalisation of RM28.4 billion. The stock has gained 19% year to date.
YTL Power climbed 28 sen or 5.7% to RM5.16, for a market cap of RM45 billion. The counter is up nearly 56% year to date.
Malayan Cement shares closed 11 sen or 1.7% higher at RM6.71, valuing the company at RM9.39 billion.