PRESS RELEASE: SUNWAY CONSTRUCTION DELIVERS 24% NET PROFIT GROWTH TO RM104 MILLION IN Q2 FY2026; OUTSTANDING ORDER BOOK HITS ALL-TIME HIGH OF RM10.5 BILLION
Malaysia’s leading vertically integrated construction company, Sunway Construction Group Berhad (“Sunway Construction” or “Group”), is pleased to announce its financial results for the second quarter and six-month period ended 30 June 2026 (“Q2 FY2026” and “1H FY2026”, respectively).
Sunway Construction recorded profit after tax and minority interests (“PATMI”) of RM103.6 million in Q2 FY2026, representing an increase of 24% from RM83.9 million in the corresponding quarter last year, despite a 31% decline in revenue to RM1.0 billion. The stronger earnings performance was supported by improved profitability across both the Construction and Precast segments, alongside a more favourable project mix.
The Construction segment registered revenue of RM941.6 million in Q2 FY2026, compared with RM1.4 billion in Q2 FY2025, as the corresponding quarter was boosted by accelerated progress on several data centre projects. Notwithstanding the lower revenue, segmental PBT increased 3% to RM124.8 million, while PBT margin strengthened to 13.3% from 8.5%. The improved margin was mainly attributable to a more favourable project mix, with a higher proportion of Advanced Technology Facilities (“ATF”) projects.
The Precast segment continued its growth trajectory, with Q2 FY2026 revenue increasing 75% to RM76.1 million, while PBT rose more than fivefold to RM6.5 million.
For 1H FY2026, the Group recorded revenue of RM2.0 billion, compared with RM2.9 billion in the corresponding period last year. Despite the lower revenue, PATMI increased 39% year-on-year to RM222.0 million, reflecting improved profitability across both business segments.
The Construction segment recorded revenue of RM1.9 billion and PBT of RM273.6 million in 1H FY2026. PBT rose 17% year-on-year, with the segment delivering its strongest six-month profit margin on record at 14.5%. This was supported by a more favourable project mix, accelerated progress on certain projects and the reversal of a provision following the recovery of a receivable.
Revenue for the Precast segment more than doubled to RM148.2 million, while PBT increased more than fivefold to RM12.4 million in 1H FY2026. The stronger performance was driven by the ramp-up of ongoing projects and the finalisation of accounts for several projects.
The Group declared a single-tier second interim dividend of 4.0 sen per ordinary share for the financial year ending 31 December 2026, bringing the total dividends declared to date to 26.8 sen per ordinary share.
Sunway Construction Group Managing Director, Mr. Liew Kok Wing, commented, “We are pleased to deliver another quarter of strong earnings growth, reflecting the strength of our project portfolio and disciplined execution. With RM6.85 billion in new orders secured year-to-date, we have surpassed our initial RM6.0 billion order book replenishment target for 2026 and are now targeting RM7.0-RM9.0 billion for the full year. Our outstanding order book has reached an all-time high of RM10.5 billion, providing strong earnings visibility and positioning the Group well for sustainable growth.”
Commenting on the Group’s prospects, Mr. Liew said, “The rapid adoption of artificial intelligence, cloud computing and digitalisation continues to drive demand for hyperscale data centres across the region. Malaysia remains well-positioned as a preferred investment destination, supported by ongoing investment in digital infrastructure, power transmission and renewable energy initiatives. This is expected to sustain a healthy pipeline of data centre investments over the medium term.”
He elaborated, “During the first half of 2026, the Group secured three new data centre-related projects, further strengthening our presence in the sector. We continue to actively pursue new ATF opportunities, building on our proven execution track record.”
He continued, “In parallel, we continue to pursue in-house projects within Sunway Group, including hospitals, integrated developments, commercial buildings and transit-oriented developments. These projects provide earnings visibility and complement the Group’s external order book with a stable base of in-house construction activities.”
He concluded, “The Group remains disciplined and selective in pursuing new opportunities, prioritising projects with healthy margins and achievable delivery timelines. Supported by our record-high outstanding order book, solid financial position, expanding technical capabilities and proven execution track record, we are optimistic about the Group’s performance for the financial year ending 31 December 2026.”
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