KUALA LUMPUR: Boustead Heavy Industries Corp
Bhd (BHIC) posted a net profit of RM104,000 in the first quarter ended March 31, 2026 (1Q26), compared with a net loss of RM5.2mil a year earlier.
The improvement was due to reduced operating costs, as well as improved performance from the group’s joint venture companies.
BHIC recorded revenue of RM29.7mil in 1Q26, down 33% from RM44.5mil a year earlier, mainly due to the completion of all submarine-related maintenance, repair and overhaul (MRO) services except for In-Service Support 2 (ISS 2).
It recorded a loss before interest, taxation, depreciation and amortisation (ebitda) of RM544,000 for the quarter, compared with an ebitda loss of RM3.2mil a year earlier, representing an 83% improvement.
The improvement was mainly due to lower staff-related costs of RM2.7mil.
BHIC recognised a share of profit from joint venture companies of RM1.6mil, compared to a share of loss of RM1.2mil in the corresponding period of 2025.
“The improvement was mainly attributable to the joint venture companies, which recorded higher gross margins compared to the corresponding quarter of the previous financial year,” it said.
BHIC said it is leveraging its engineering foundation, systems integration expertise and technical support capabilities to expand into the land and air defence segments.
“The group intends to pursue selective collaborations and strategic partnerships with reputable international industry players to strengthen technological capabilities, deepen domain expertise and enhance programme competitiveness,” it said.
BHIC is also exploring potential collaboration opportunities following its participation in the Defence Services Asia (DSA) exhibition.
“These strategic engagements are expected to strengthen BHIC’s market position and support the group’s long-term growth prospects within the broader defence industry.”
