KUALA LUMPUR (Aug 26): Aluminium product maker PMB Technology Bhd (KL:PMBTECH), a 23.2%-owned associate of Press Metal Aluminium Holdings Bhd (KL:PMETAL), said it expects coming quarters to remain challenging as it fell into the red in the second quarter, dragged by higher logistics costs linked to the conflict in West Asia.

Net loss for the three months ended June 30, 2026 (2QFY2026) stood at RM23.52 million compared with a net profit of RM2.03 million in the same quarter a year earlier, according to a bourse filing on Wednesday.

This is the company’s third straight quarter in the red.

The latest loss came despite a 45.9% increase in 2Q revenue to RM279.89 million from RM191.77 million in the same period last year, mainly fuelled by higher sales of metallic silicon.

For the cumulative six months of this year, net loss stood at RM48.16 million compared with a net profit of RM4.66 million in the same period last year.

The loss came despite revenue rising 41.6% year-on-year to RM493.13 million.

The outlook for the silicon metal industry is expected to remain challenging for the remainder of the financial year, PMB Technology noted.

Persistent oversupply, elevated inventory levels and subdued downstream demand continue to weigh on market prices and industry margins, it said.

Geopolitical uncertainties and disruptions to key shipping routes, meanwhile, have resulted in higher freight costs and longer delivery lead times, it added.

Against this backdrop, the group said it will continue its inventory destocking efforts and has implemented a temporary production curtailment to align with prevailing market conditions.

“During this period, the group will focus on optimising inventory and resource utilisation, preserving cash flow, and undertaking planned maintenance and asset-preservation works, while maintaining disciplined cost and capital management,” it added.

Shares of PMB Technology ended three sen or 1.72% higher at RM1.77 on Wednesday, valuing the company at RM3.35 billion.