KUALA LUMPUR (Aug 28): Destini Bhd (KL:DESTINI) swung into the red in its fourth financial quarter on reduced revenue, leading to lower overall earnings contribution.

The group recorded a net loss of RM12.28 million for the fourth quarter ended June 30, 2026 (4QFY2026) compared with a net profit of RM8.44 million a year earlier.

Revenue fell 29.7% to RM63.45 million from RM90.28 million amid lower contributions from the aviation and defence, marine and energy segments, according to the group's exchange filing on Friday.

The quarter included the reversal of previously recognised maintenance, repair and overhaul (MRO) revenue after the segment reached the ceiling of its existing maintenance contract with the Royal Malaysian Air Forcen

Administration expanses, meanwhile, grew to RM52 million from RM19.9 million.

Destini said the aviation and defence segment recorded negative revenue of RM3.8 million in the quarter, which resulted in the loss of tax of RM9.37 million.

The group said discussions are ongoing with relevant authorities on a revision to the contract ceiling, although the timing and outcome remain uncertain.

For the full year, Destini’s net profit fell 84% to RM4.52 million from RM28.18 million in FY2025, while revenue decreased 9.6% to RM307.76 million from RM340.49 million.

The weaker full-year performance was largely attributable to lower contributions from the aviation and defence, marine and energy sectors, but Destini said this was partly offset by stronger mobility revenue and cost optimisation.

“FY2026 was a year of mixed outcomes. Mobility performed to expectation and remains our core revenue driver, while aviation & defence, and energy were held back by factors we are actively working through — a contract ceiling that needs to be revised and a services portfolio that is being reloaded,” group managing director Datuk Seri Dr Shahril Mokhtar said in a statement.

“Neither changes the underlying demand for what we do, and both are matters of timing rather than capability,” he added.

For FY2027, the group expects mobility to remain its main earnings contributor, supported by existing Ministry of Transport contracts worth RM694 million. It also secured a RM136 million contract with the ministry, but did not disclose further details.

The group has also secured new rail maintenance work, including a RM45.58 million award from Railway Assets Corporation for MRO services covering 13 Class 61 diesel multiple unit train sets over 24 months.

Destini said the energy segment has begun showing signs of recovery in rig-related activity, while the new contracts are expected to provide greater revenue visibility as work ramps up.

Shares of Destini closed down one sen or 3.8% to 25.5 sen on Friday, giving the group a market capitalisation of RM140 million. Year to date, the counter has fallen by 12%.