MMHB Profit Plummets 85% Amid Drop in Heavy Engineering Activity

Last updated on August 23, 2025

KUALA LUMPUR, 22 August 2025 – Malaysia Marine and Heavy Engineering Berhad (MMHB) reported a sharp 85% decline in profit this quarter, with net earnings falling to RM10 million. The steep drop in profitability coincides with markedly lower revenue as its primary heavy engineering segment sees a slowdown.

MMHB’s quarterly revenue came in at RM884.7 million—down almost RM1 billion from RM1.88 billion in the same period last year. Much of this decline stemmed from the Heavy Engineering division, which saw revenue slump to RM310 million, compared to RM809.5 million in the previous year. The downturn is partly attributed to major projects nearing completion and newly awarded contracts still in their initial rollout phase.

Operating profit mirrored this reduction: the Heavy Engineering arm posted just RM1.5 million, a stark contrast to RM67.7 million from a year earlier. MMHB attributes this collapse to reduced project activity and the absence of client cost reimbursements that had bolstered profitability in the previous period.

Conversely, the marine segment delivered a more encouraging performance. Revenue climbed to RM121.6 million—an increase of RM31 million year-on-year—driven by higher vessel conversion and repair operations. Operating profit for this segment rose to RM11 million from RM9.1 million in the previous corresponding quarter, offering a small bright spot amid broader weakness.

With the heavy engineering sector at the heart of MMHB’s slowdown, the company faces earnings pressure as flagship projects wrap up and new contracts are still ramping up. While marine services continue to show resilience, the group’s full quarterly performance reveals the critical need to refresh its heavy engineering pipeline to stabilise earnings.