MAIN Market-listed renewable energy (RE) system provider Wasco Greenergy Bhd (Greenery) has dished out stronger profitability amid a softer revenue performance for its 2Q FY2026 ended June 30, 2026.
Its latest financial results are supported by improved margins, resilient operational execution and continued contributions from the Industrial Energy & Equipment segment and an order book of RM220.7 mil.
Fore the period under review, the group’s pre-tax profit and net profit spiked 34.1% year-on-year (yoy) and 28.2% yoy respectively to RM5.58 mil (2Q FY2025: RM4.16 mil) and RM3.88 mil mil (2Q FY2025: RM2.01 mil).
However, the group’s revenue dipped slightly to RM60.7 mil from RM64.71 mil a year ago driven by the timing of its engineering, procurement, construction and commissioning (EPCC) project activities which were partially offset by higher steam turbine deliveries and after-sales services.
Likewise, the group’s six-month revenue was weaker at RM115.07 mil compared with RM126.16 mil in 1H FY2025. Nvertheless, pre-tax profit was relatively flat at RM10.48 mi (1H FY2025: RM10.47 mil) while net profit stood at RM7.96 mil (1H FY2025: RM6.68 mil),
The group’s Renewable Energy (RE) segment remained its primary revenue contributor by having generated revenue of RM53.1 mil in 2Q FY2026 compared with RM55.6 mi in the same period of FY2025.
The variance was primarily attributable to the timing of EPCC project activities which were partially offset by higher steam turbine deliveries and after-sales services.
Healthy net cash position
During the quarter, 19 steam turbine units were delivered, up from 15 units in 2Q FY2025 while after-sales services continued to account for approximately one-third of segment revenue.
Gross profit for the segment stood at RM12.9 mil from RM16.0 mil the year before with gross profit margin moderating to approximately 24.3% from 28.8% following softer EPCC and steam turbine sales margins.
The Industrial Energy & Equipment segment contributed revenue of RM7.7 mil from RM9.1 mil in 2Q FY2025. However, gross profit rose to RM2.1 mil from RM1.4 mil a year ago while gross profit margin strengthened to a26.8% from 14.9%.
“As we move into 2H FY2026, our priority is to build on Wasco Greenergy’s established engineering capabilities and position the group for its next phase of growth,” commented Wasco Greenergy’s group managing director Wong Yin Kee.
“We see opportunities to deepen our presence in key markets, particularly Malaysia and Indonesia while continuing to pursue opportunities across the palm oil and process industries.”
Added Wong: “With a healthy net cash position and an order book that provides good visibility into FY2027, we remain focused on executing our existing projects well while continuing to convert opportunities across both the palm oil and industrial sectors.”
Looking ahead, the group expects demand for efficient and sustainable steam energy systems to remain supported by industrial decarbonisation initiatives, tightening energy efficiency requirements and continued investment within the palm oil and process industries in Malaysia and the broader ASEAN region.
The on-going development of Malaysia’s voluntary carbon market is expected to reinforce these trends.
Elsewhere, market-based mechanisms such as the Bursa Carbon Exchange (BCX), which enables businesses to trade carbon credits and manage their emissions are increasingly encouraging companies to measure and reduce their carbon footprint.
At the close of today’s (Aug 27) market trading, Wasco Greenergy was down 1 sen or 2.56% to 38 sen with 1.29 million shares traded, thus valuing the company at RM190 mil. – Aug 27, 2026
