PETALING JAYA: Capital A Bhd
expects a modest operational rebound in the fourth quarter as year-end peak travel demand, restoration of airline capacity and stronger e-commerce volumes help offset another challenging quarter ahead amid capacity cuts and seasonal weakness.
The group said it expects capacity reductions to continue into 3Q26, while macroeconomic uncertainties and market volatility remain key risks to its businesses.
Nevertheless, its exit from Practice Note 17 (PN17) status has provided greater funding flexibility and fewer capital restrictions, allowing it to accelerate growth in its digital, logistics and engineering businesses.
For the second quarter ended June 30 (2Q26), Capital A recorded a net profit attributable to shareholders of RM23.9mil from continuing operations, a sharp turnaround from a net loss of RM204.2mil in 2Q25. However, it is noted that Capital A made a profit of RM1.66bil from discontinued operations in 2Q25.
On a per-share basis, earnings improved to 0.5 sen from a loss of 4.7 sen previously.
For the first half of 2026 (1H26), net profit from continuing operations came in at RM46.3mil, reversing a net loss of RM395.5mil in 1H25, where discontinued operations contributed a profit of RM2.54bil.
Basic earnings per share in 1H26 improved to 1 sen from a loss of 9.1 sen previously.
Contextually, Capital A said the year-on-year (y-o-y) improvement came despite the absence of the aviation business from the current reporting period following its disposal to AirAsia X Bhd, with the comparative figures restated under the Malaysian Financial Reporting Standards (MFRS) 5 to treat aviation as discontinued operations.
On a continuing-operations basis, 2Q26 revenue stood at RM809.4mil, almost doubling from RM422.6mil in 2Q25. Logistics revenue increased to RM311.2mil from RM254.8mil, while engineering revenue rose to RM283.8mil from RM49.3mil. AirAsia MOVE revenue also increased to RM96.1mil from RM29.6mil.
Asia Digital Engineering (ADE) was a major contributor to the stronger performance, with 2Q26 revenue climbing 29% y-o-y to RM284mil. Growth was supported by a 9% increase in base maintenance and RM35mil from engine repair and installation services.
Teleport also moved further into profitability, with its net operating profit rising by RM3.6mil y-o-y to RM7.6mil, while profit after tax improved to RM4.4mil from a RM100,000 loss in 2Q25. Revenue grew 22%, supported by an 11% increase in cargo tonnage and a 79% surge in parcel volumes to 56.5 million units.
AirAsia MOVE continued to expand despite higher fuel prices, geopolitical disruptions and airline capacity cuts. Monthly active users increased 22% year-on-year to 16 million, while gross booking value rose 8% to US$1.3bil and transactions grew 8% to 11.8 million.
For 1H26, Capital A's revenue reached RM1.58bil, with EBITDA at RM207 million and net profit at RM46.3mil. The group acknowledged that these figures were below its initial targets for the current financial year ending December (FY26), and said it was recalibrating those targets to align with performance within about 10% of FY25 levels.
