THE Corten brand has emerged a key growth driver for integrated home and living solutions provider Signature International Bhd with the segment having delivered a revenue of RM77.2 mil or a 48.5% year-on-year (yoy) spike for its 1Q FY2026 ended March 31, 2026.
Driven by high-margin project deliveries in Singapore and effective cost controls, Corten’s pre-tax profit surged 327% to RM18.4 mil with pre-tax earnings’ margins jumping from 8.3% to 23.8%.
This operational momentum is fully backed by the group’s unbilled order book which expanded by RM108 mil during the quarter under review to reach RM1.24 bil as of end- March 2026.
The Corten brand now accounts for majority of this pipeline at RM811 mil followed by RM326 mil from the Signature brand and RM98 mil from the Interior Fit-Out Works segment.
“The Corten brand had an exceptional quarter, anchored by strong demand and high-margin project execution in Singapore,” commented Signature International’s group CEO K.S. Lau.
“Our order book has grown past RM1.2 bil which provides us with clear earnings visibility for the coming quarters. We ‘re also seeing a tangible recovery in the Signature brand’s profitability which proves that our recent cost-structuring efforts are working.”
Added Lau: “We enter the rest of FY2026 focused purely on executing our RM1.24 bil order book while maintaining our margin discipline and driving cash flow.”
Financially sound
Elsewhere, the core Signature brand recorded a sharp profitability recovery during the quarter.
Despite a slight revenue decline to RM45.7 mil, segment pre-tax profit soared 160% to RM3.4 mil with margins recovering from 2.7% to 7.5%. This single-quarter profit exceeds the brand’s entire pre-tax contribution for the full FY2025.
The Interior Fit-Out Works segment recorded revenue of RM88.8 mil and a pre-tax profit of RM11.2 mil which reflected project timing variations and increased staff-related expenses to support business expansion although segment margins remained healthy at 12.6%.
At the group level, 1Q FY2026 revenue stood at RM211.70 mil of 14.4% yoy lower (1Q FY2025: RM247.47 mil) given the aforementioned project timing variations in the Interior Fit-Out segment.
However, the group’s core operations strengthened with profit from operations having inched up 3.4% yoy to RM30.3 mi, thus driving the operating margin up to 14.3% from 11.9% a year ago.
Likewise, the group reported a lower pre-tax profit of RM28.56 mil (1Q FY2025: RM32.81 mil) and a net profit of RM12.87 mil (1Q FY2025: RM17.53 mil),
The yoy decline in statutory profit was driven almost entirely by a lower share of profit from its 22.6%-owned associate Fiamma Holdings Bhd which contributed RM2.4 mil compared to RM8.2 mil in 1Q 20FY25. Excluding this associate swing, Signature’s core operating pre-tax earnings grew 6.5% yoy.
All-in-all, the group maintained a stable financial position. Total equity rose to RM708.8 mil while total borrowings were pared down to RM249.9 mil. Trade receivables also fell sharply, reflecting robust collection efforts during the quarter.
At the close of today’s (May 21) market trading, Signature International was unchanged at RM1.35 with 75,500 shares traded, thus valuing the company at RM871 mil. – May 21, 2026
