Last updated on August 23, 2025
Kuala Lumpur, 21 August 2025 – Integrated engineering solutions provider, Kelington Group Berhad (“Kelington” or “Group”) (stock code:0151) today announced its second quarter (“2QFY25”) and six months financial results for the period ended 30 June 2025 (“1HFY25”).
During the quarter, Kelington recorded profit attributable to shareholders (“net profit”) of RM32.9 million, representing a 23.3% year-on-year (“YoY”) increase from RM26.7 million in the corresponding period last year (“2QFY24”). The Group’s net profit margin improved to 11.7%, compared with 8.3% in the same quarter last year. This performance was mainly driven by better project mix with higher profit margins.
Revenue for 2QFY25 stood at RM282.0 million, vis-à-vis RM321.2 million in 2QFY24. The lower revenue was primarily attributable to timing differences in revenue recognition for engineering-related projects in Malaysia and China. This was partially offset by higher contributions from Singapore, while the Industrial Gas segment saw softer performance.
Despite the lower revenue, the Group’s core business remains resilient, supported by recent geographical expansion, sustained global semiconductor investment, and a continued focus on securing higher-margin projects.
For 1HFY25, the Group achieved a net profit of RM59.5 million on revenue of RM552.3 million. The Advanced Engineering segment remained the largest revenue contributor, delivering RM384.5 million and accounting for 69.6% of Group revenue. This was followed by the General Contracting, Industrial Gases and Process Engineering segments, which contributed RM78.9 million (14.3%), RM62.6 million (11.3%) and RM25.8 million (4.7%) respectively.
Commenting on the Group’s financial performance, Ir. Raymond Gan (“顏漢慶”), Chief Executive Officer of Kelington Group Berhad said, “We are pleased to deliver another strong set of results in the first half of the year. Given the strong pipeline of opportunities, the Group was able to be more selective in pursuing higher-margin projects and this strategic focus has been reflected in our performance.”
“Also, our geographical expansion strategy is beginning to bear fruit. In particular, our entry into Germany has gained traction, with the Group securing a Letter of Intent (“LOI”) for a semiconductor hook-up project in Germany valued between EUR30 million and EUR50 million (approximately RM146.0 million to RM244.0 million). Together with RM549.0 million in contract wins in 1HFY25, these developments strengthen our order book and provide a solid foundation for growth ahead.”
The Group is also eyeing opportunities in Japan, having established its first subsidiary, Kelington Engineering (Japan) K.K., in June 2025 to build a direct presence and explore growth prospects in the market.
He added, “In our Industrial Gases division, we are broadening our product offerings with on-site gas solutions and exploring green hydrogen opportunities in collaboration with state authorities. At the same time, we are actively pursuing opportunities in carbon capture, utilisation and storage (“CCUS”) to strengthen our long-term growth prospects.”
In 1HFY25, Kelington signed Memorandum of Understanding (“MoU”) with Malaysia Steel Works (KL) Berhad, Universiti Tunku Abdul Rahman to explore CCUS, and with PETRONAS CCS Solutions Sdn. Bhd. to assess CCS opportunities.
As at 30 June 2025, the Group’s equity attributable to owners of the Company rose to RM539.0 million from RM473.3 million as at end of December 2024, supported by the exercise of warrants and consistent quarterly profits.
The Group continued to maintain a healthy balance sheet, with cash reserves of RM522.4 million surpassing total borrowings of RM180.9 million.
The Group has announced a second interim tax-exempt dividend of 2.5 sen per ordinary share for the financial year ending 31 December 2025 (“FY2025”), amounting to RM18.9 million. Including this, total dividends declared for FY2025 stood at 5 sen per ordinary share or RM37.3 million, equivalent to 62.7% of the Group’s 1HFY25 net profit.
As at 30 June 2025, Kelington maintained a solid outstanding order book of RM1.3 billion, underpinned by a healthy tender pipeline of RM5.4 billion.
