KUALA LUMPUR: Sunway Construction Group Bhd
’s (SunCon) net profit rose 23.5% to RM103.6mil in the second quarter ended June 30, 2026 (2Q26), from RM83.9mil a year earlier, as improved margins and a favourable project mix offset lower revenue.
Quarterly revenue, however, fell 31.1% to RM1.02bil from RM1.48bil previously, as the corresponding quarter last year benefited from accelerated progress on several data centre projects.
“The stronger earnings performance was supported by improved profitability across both the construction and precast segments, alongside a more favourable project mix,” the construction group said in a statement.
Its construction segment recorded revenue of RM941.6mil, down from RM1.4bil a year earlier.
Despite the lower revenue, profit before tax (PBT) rose 3% to RM124.8mil, while its PBT margin improved to 13.3% from 8.5%, mainly due to a higher proportion of advanced technology facilities (ATF) projects.
The precast segment recorded a 75% increase in revenue to RM76.1mil, while PBT rose more than fivefold to RM6.5mil.
For the first half of 2026 (1H26), SunCon’s net profit increased 39.1% to RM222mil from RM159.61mil a year earlier, despite revenue falling 29% to RM2.04bil from RM2.88bil.
Group managing director Liew Kok Wing said the strong earnings growth reflected the strength of the group’s project portfolio and disciplined execution.
“With RM6.85bil in new orders secured year- to-date, we have surpassed our initial RM6bil order book replenishment target for 2026 and are now targeting RM7bil to RM9bil for the full year.
“Our outstanding order book has reached an all - time high of RM10.5bil, providing strong earnings visibility and positioning the group well for sustainable growth,” he said.
He added that the rapid adoption of artificial intelligence, cloud computing and digitalisation continues to drive demand for hyperscale data centres across the region.
Liew noted Malaysia remained well-positioned as a preferred investment destination, supported by investments in digital infrastructure, power transmission and renewable energy.
During 1H26, the group secured three new data centre-related projects and continues to pursue new ATF opportunities.
“The group remains disciplined and selective in pursuing new opportunities, prioritising projects with healthy margins and achievable delivery timelines,” Liew said.
Sunway Construction declared a second interim dividend of four sen per share for FY26, bringing total dividends declared to date to 26.8 sen per share.
The group said it remained optimistic about its performance for FY26, supported by its record-high order book, solid financial position and project pipeline.
