KUALA LUMPUR: HSS Engineers Bhd
’s net profit rose 3.9% to RM6.8mil, or earnings per share of 1.34 sen in the second quarter ended June 30, 2026 (2QFY26), from RM6.6mil, or 1.29 sen a year ago, supported by stronger operating momentum as ongoing projects progressed through their delivery phases.
Revenue slipped 4.8% year-on-year to RM54.9mil from RM57.7mil, while earnings per share increased to 1.34 sen from 1.29 sen.
On a quarter-on-quarter basis, however, it recorded stronger growth, with revenue rising 19.4% while pre-tax profit surged 68.7% to RM9.4mil. Gross profit increased 27.7% during the quarter.
“The sequential improvement reflects stronger revenue recognition and operating momentum across the group’s portfolio as ongoing projects progress through their respective delivery phases,” HSS Engineers said in a statement.
Project management remained the group’s largest revenue contributor in the second quarter, increasing 2.2% year-on-year to RM24.6mil, supported by consulting services for the Davao Public Transport Modernisation Project in the Philippines.
Revenue from Malaysia rose 2.8% year-on-year to RM50.7mil for the quarter.
In the first six months to June 30, HSS Engineers’ net profit rose 29.8% to RM10.6mil from RM8.1mil a year earlier while revenue stood at RM101mil compared with RM109.3mil in the previous corresponding period.
As at June 30, the group had an unbilled order book of RM2.2bil, providing earnings visibility of up to eight years.
Project management accounted for about 80% of the order book, followed by engineering design at 13.1% and construction supervision at 6.5%.
The group also had an active tender book of about RM480mil, providing further opportunities to replenish its order book and support its medium-term growth pipeline.
Executive vice-chairman Tan Sri Ir Kuna Sittampalam said the first-half performance demonstrated the resilience of HSS Engineers’ business model and strengthened earnings momentum.
“The 29.8% growth in PATAMI, together with the significant quarter-on-quarter improvement in 2Q26, provides us with a strong platform as we move into the second half of the year,” he said.
Kuna said the group’s immediate priority was to convert its RM2.2bil unbilled order book into revenue and earnings through disciplined execution and timely project delivery, while replenishing its pipeline through its RM480mil tender book.
“We remain positive on the infrastructure outlook in Malaysia, particularly across transportation and rail, water, ports and renewable energy, where HSS has established capabilities and a strong track record.
“At the same time, we are positioning the group for its next phase of growth by expanding our regional presence and developing higher-value capabilities in digitalisation, AI-enabled solutions and other technology-driven engineering services,” Kuna said.
