MGB posts 12% YoY profit growth in Q2 FY2026 despite lower revenue

KUALA LUMPUR, 19 AUGUST 2026 —

MGB Posts 12% Profit Growth in Q2 FY2026 Despite Lower Revenue

The Group recorded revenue of RM201.7 million in Q2 FY2026, down from RM216.4 million in the same period last year. The decline was primarily driven by lower contributions from the Property Development segment following the completion and handover of several projects. While the Construction & Trading segment saw stable revenue year-on-year, domestic contributions softened as several projects reached completion and new ones entered early execution phases.

This was partially offset by stronger contributions from overseas projects.

Despite the revenue dip, MGB delivered a 12% year-on-year increase in profit after tax and non-controlling interests (PATAMI) to RM13.3 million. The improvement was attributed to effective cost optimisation, disciplined project execution and improved margins across both business segments.

For the first half of FY2026 (1H FY2026), revenue reached RM411.8 million, while PATAMI rose 16% year-on-year to RM27.5 million, underscoring the Group’s earnings resilience amid timing-related revenue effects.

Strategic Expansion and Orderbook Strength Tan Sri Dato’ Sri Ir. (Dr.) Lim Hock San, MGB Group Executive Chairman, highlighted the Group’s operational discipline and strategic focus in sustaining profitability. “Our second quarter performance reflects the robustness of our business model and the effectiveness of disciplined execution,” he said. “While revenue moderated, our operational efficiency and prudent cost management enabled us to deliver stronger margins and improved profitability.”

Within the Construction & Trading segment, MGB is strengthening its domestic presence while expanding into the Kingdom of Saudi Arabia (KSA), where the construction sector remains. The Group recently secured a second main contract worth RM44.7 million from ROSHN Group Company, one of Saudi Arabia’s leading real estate developers. This repeat award reinforces ROSHN’s confidence in MGB’s capabilities and strengthens its reputation as a trusted delivery partner in the Saudi market.

As of 30 June 2026, MGB’s domestic construction order book stood at RM1.68 billion, providing strong earnings visibility and a solid foundation for sustained growth.

Property Development Momentum Continues In the Property Development segment, MGB launched Project Idaman Cahaya Phase 3 during the quarter, with an estimated gross development value (GDV) of RM117.4 million. The project achieved a healthy take-up rate shortly after launch, reflecting sustained demand for its developments. Unbilled sales in the segment stood at approximately RM290 million as of 30 June 2026, offering healthy earnings visibility ahead.

Property Development remains a key growth pillar for MGB. Over the period from FY2026 to FY2028, the Group plans to launch new developments with a total estimated GDV of RM2.7 billion, further strengthening its development pipeline and supporting sustainable earnings growth. With a strong pipeline of planned launches and disciplined execution, unbilled sales are expected to build progressively, enhancing earnings visibility and supporting future performance.

Regional and Sectoral Implications The Group’s expansion into Saudi Arabia aligns with broader trends in the Middle East construction market, where large-scale infrastructure and real estate projects continue to drive demand for specialised construction and IBS solutions. MGB’s ability to secure repeat contracts from major developers like ROSHN signals growing international recognition of its capabilities.

Domestically, the softening in Property Development revenue reflects typical cyclical patterns following project completions, though strong unbilled sales and a development pipeline suggest continued resilience. The Construction & Trading segment’s stability, supported by overseas projects, indicates diversification benefits as the Group navigates domestic market fluctuations.

Stakeholder Perspectives Industry analysts note that MGB’s ability to maintain profitability amid revenue moderation reflects effective cost management and operational discipline—key factors in Malaysia’s competitive construction sector. The Group’s focus on IBS precast concrete manufacturing also positions it well to benefit from government initiatives promoting industrialised construction methods.

Investors will likely focus on the Group’s progress in executing its RM2.7 billion development pipeline and the pace of international contract wins, particularly in Saudi Arabia, as indicators of long-term growth potential.

Forward Outlook Looking ahead, MGB remains focused on expanding its international footprint while strengthening its domestic order book. The Group’s disciplined approach to project execution, coupled with a diversified revenue base, positions it well to capitalise on opportunities in both Malaysia and overseas markets.

With a strong development pipeline and growing international presence, MGB is poised to enhance earnings visibility and support sustainable growth in the coming quarters.

Related: MGB Berhad · Tan Sri Dato’ Sri Ir. (Dr.) Lim Hock San · KUALA LUMPUR