MAIN Market-listed Kinergy Advancement Bhd has rolled out a resilient 1Q FY2026 ended March 31, 2026 with its revenue having spiralled 48.8% year-on-year (yoy) to RM102.04 mil anchored by its Sustainable Energy Solutions (SES) segment which accounted for 75% of its total 1Q revenue.
Profitability improved in line with stronger operational execution with the group’s net earnings firmed 22.0% yoy to RM7.37 mil (1Q FY2025: RM6.25 mil) while its operating profit grew 27.2% during the quarter to RM11.97 mil.
In essence, the quarter’s financial profile reflects continued orderbook conversion into earnings, hence further re-affirming a sustained execution cadence built over prior periods.
At the segment level, SES’ revenue jumped 123% yoy to RM76.3 mil with segment profit growing 31.2% yoy to RM11.1 mil.
Progressive billings from key PETRONAS-linked projects in Sabah and Labuan underpin near-term revenue visibility while supporting the group’s 2H FY2026’s earnings outlook.
Scalable growth mindset
This structural dual-engine model is intended to temper the cyclicality inherent in project-driven revenue, improve earnings resilience over the medium term and enhance cash flow visibility.
This in turn strengthens the foundation for scalable growth while providing greater downside protection and supporting long-term value accretion across the energy value chain.
“With steady quarter-on-quarter progress, we see not only continued momentum but also confirmation that SES has become a more meaningful part of our business,” commented Kinergy’s group managing director Datuk Lai Keng Onn.
“As we advance our energy infrastructure journey, we’re beginning to see the early phase of orderbook conversion into revenue which reflects the realisation of our execution strength.”
Delving further, Lai revealed that the group’s ambition is to build a differentiated position in the energy space – one that does not compete as a stand-alone solution but instead complements and strengthens the broader ecosystem.
“This is why execution remains our foundation,” stressed Lai who is also Kinergy’s executive deputy chairman.
“Despite the challenges over the past eight years, we remain disciplined and focused on scaling a more balanced and sustainable energy platform – one that supports national aspirations while staying true to our long-term vision and mission.”
As it is, the group has continued to demonstrate financial prudence alongside growth execution by maintaining a disciplined approach to capital management and funding its expansion initiatives.
This is reflected in a current debt-to-equity ratio of 0.8x as of 1Q FY2026 which remains well within its internal policy ceiling of 2.5x.
Moving forward, Kinergy expects to enter 2H FY2026 with a stronger momentum outlook which is supported by disciplined EPCC (engineering, procurement, construction and commissioning) selectivity amid shifting sector dynamics and an on-going transition towards a more balanced portfolio mix.
Anchored by a combined RM3.8 bil pipeline comprising a RM1.0 bil order book and RM2.8 bil active tender book, the group continues to convert opportunities into execution, delivery and earnings realisation.
At 3.10pm, Kinergy was up 1 sen or 2.56% to 40 sen with 10.1 million shares traded, thus valuing the company at RM874 mil. – May 26, 2026
Main image credit: GLEG
