KUALA LUMPUR (Aug 26): Automation solutions firm Greatech Technology Bhd's (KL:GREATEC) second-quarter net profit jumped 29.5% from a year earlier despite lower revenue, bolstered by favourable foreign exchange (forex) movements and the reversal of impairment losses on financial assets.

Net profit for the three months ended June 30, 2026 (2QFY2026) rose to RM33.58 million from RM25.93 million for 2QFY2025, its bourse filing showed. Earnings were further lifted by a 50.3% drop in administrative and marketing expenses to RM18.58 million.

In contrast, the previous corresponding quarter was weighed down by a net forex loss and an impairment charge.

Revenue for 2QFY2026 dropped 9.9% to RM209.6 million from RM232.72 million for 2QFY2025, mainly on lower contributions from its core contributor, the e-mobility sector. Gross profit margin slid to 24.79% from 28.04%, mainly due to changes in the mix of projects recognised.

No dividend was declared with the latest earnings announcement.

For the cumulative six months, the group's net profit slipped 3.8% to RM60.47 million from RM62.84 million, as revenue retreated 4.8% to RM388.6 million from RM408.12 million.

Greatech said it remains confident yet prudent on its upcoming quarters, underpinned by the ongoing execution of its order book.

“The long-term demand drivers for automation, precision engineering and advanced manufacturing solutions across the group’s targeted sectors remain compelling,” it added.

As at Aug 21, the group’s outstanding order book stood at RM1.83 billion and is expected to last until the second half of 2027, it noted.

Shares of Greatech ended seven sen or 2.69% higher at RM2.67 on Wednesday, valuing the group at RM6.71 billion.