KUALA LUMPUR, August 25, 2025 – GFM Services Berhad (“GFM” or “the Group”), a leading integrated facilities management (IFM) provider, has reported stable earnings for the second quarter of the financial year ending 30 June 2025 (2QFY25), recording a net profit of RM5.8 million, unchanged from the same period last year.
Revenue Growth Driven by Oil & Gas Segment
The Group delivered a 4.4% year-on-year (YoY) revenue increase, climbing to RM52.4 million from RM50.2 million in 2QFY24. The stronger top line was largely supported by robust performance in the oil and gas (O&G) maintenance division, which surged 19.7% YoY to RM17.2 million. This accounted for nearly one-third of GFM’s total revenue and was driven by additional work under the Integrated Turnaround Main Mechanical and Maintenance Mechanical Static (TA4MS) contract at the Pengerang Integrated Complex (PIC).
Meanwhile, the facilities management (FM) division remained the core revenue contributor with RM28.0 million, representing 53.5% of group revenue. However, this figure was slightly lower than the RM28.3 million recorded a year ago due to fewer variation orders recognised under the long-standing Jabatan Kerja Raya (JKR) contract.
The concession segment contributed RM7.1 million, equivalent to 13.6% of total revenue, compared to RM7.5 million in 2QFY24. This moderation reflected lower accrued interest income as its financial asset base continued to amortise.
Profitability and Costs
Gross profit increased 3.9% YoY to RM17.0 million from RM16.4 million in 2QFY24, though the gross profit margin narrowed slightly to 32.5% from 32.6%, attributed to higher cost of sales in the O&G division. Administrative expenses rose to RM3.2 million from RM2.5 million, reflecting costs associated with corporate exercises and business development initiatives aimed at securing future projects.
Despite these higher expenses, GFM managed to sustain its bottom line, delivering a consistent RM5.8 million net profit for the quarter.
First-Half Performance
For the first half of FY25 (1HFY25), GFM posted RM100.3 million in revenue, slightly lower than the RM103.5 million achieved in 1HFY24. The decline was mainly due to softer contributions from the FM division, which fell to RM52.4 million from RM59.9 million previously. This was, however, partially offset by a 17.6% YoY growth in the O&G segment, which generated RM33.6 million compared to RM28.6 million in the prior year.
Concession revenues contributed RM14.3 million, down from RM15.0 million a year earlier. Net profit for the six months stood at RM11.8 million, marginally lower than RM12.0 million in 1HFY24.
On a quarterly comparison, revenue in 2QFY25 rose 9.2% quarter-on-quarter (QoQ) from RM48.0 million in 1QFY25, supported by stronger FM and O&G contributions. Net profit eased slightly from RM6.0 million in the preceding quarter to RM5.8 million.
Management Outlook
Group Managing Director Encik Ruslan Bin Nordin expressed optimism about GFM’s growth trajectory, highlighting government-backed infrastructure initiatives under the Public-Private Partnership Master Plan 2030 (PIKAS 2030) as catalysts for the FM division.
He also pointed to strong momentum in the O&G segment, buoyed by the successful turnaround of Highbase Strategic Sdn Bhd and ongoing works under PETRONAS’s TA4MS contract at PIC. Major plant turnarounds scheduled for 2026 and 2027 are expected to drive significant business activity.
Ruslan further noted that the proposed acquisition of a 60% stake in Shapadu Energy Sdn Bhd would strengthen GFM’s foothold in the O&G market. Shapadu Energy’s subsidiary, Shapadu CR Asia (SCRA), also holds a TA4MS contract, offering long-term recurring revenue opportunities.
Diversification and Order Book Strength
GFM is also diversifying into new revenue streams through its Rest Service Area (RSA) initiative, with the first project at Sungai Muda currently pending regulatory approval. Additional RSAs in Bemban (Melaka) and Karak (Bentong) are underway, expected to generate recurring income and broaden the Group’s portfolio.
As at 30 June 2025, GFM’s order book stood at RM1.09 billion, anchored by key contracts such as the KP Mukah Development university concession (RM725.2 million, until 2035) and the JKR contract (RM170.8 million, until July 2027). These long-term agreements provide visibility and earnings stability for the Group.
Conclusion
With a solid order pipeline, expanding presence in O&G maintenance services, and diversification into new business areas, GFM Services remains well-positioned to sustain growth. Despite near-term margin pressures, the Group’s strategy of leveraging infrastructure demand, enhancing operational efficiency, and pursuing selective acquisitions is expected to deliver sustainable shareholder value.
