Kuala Lumpur, 27 February 2026 – Northern Solar Holdings Berhad (Bursa: NORTHERN, 0340) reported its strongest quarterly performance since listing on the ACE Market, underpinned by accelerating execution of larger commercial and industrial (C&I) solar projects.
For the third quarter ended 31 December 2025 (Q3 FY2026), revenue surged 50.1% year-on-year to RM36.1 million, while Profit After Tax (PAT) rose 19.5% to RM4.1 million.
On a cumulative nine-month basis (9M FY2026), revenue climbed 43.7% to RM92.3 million, with PAT increasing 12.1% to RM12.2 million.
EPCC Solar PV Remains Core Growth Engine
The engineering, procurement, construction and commissioning (EPCC) Solar PV segment, Northern Solar’s core business, generated RM90.3 million in revenue, accounting for 97.8% of total revenue and representing 43.1% year-on-year growth.
Revenue expansion was driven by:
- Higher delivery volumes across commercial, industrial and residential clients
- Larger-scale installations entering active billing phases in Q3
Although gross profit margin for the nine-month period moderated to 32.9% (from 37.6%), this reflected cost dynamics associated with executing larger-value projects. Absolute gross profit still rose 25.9% to RM30.4 million.
Recurring Revenue Streams Gaining Traction
While still modest in contribution, recurring income streams are expanding:
- Electricity sales from owned solar assets: RM1.8 million (+78.2%)
- Operations & maintenance services: RM0.2 million (more than doubled)
Together, these segments contributed 2.2% of total revenue, with management exploring further expansion to enhance earnings stability.
Strong Balance Sheet and Deleveraging
Northern Solar closed the period with a robust financial position:
- Cash & Bank Balances: RM42.6 million
- Total Borrowings: RM7.9 million (down 23.1%)
- Net Cash Position: RM34.6 million
- Gross Gearing: 0.10x
- NAV per Share: RM0.20 (+17.6%)
The strengthening balance sheet reflects consistent retained earnings accumulation since listing and prudent capital management.
Solar ATAP and Structural Tailwinds
The Group has now delivered three consecutive profitable quarters post-IPO, reinforcing execution capability at scale.
Looking ahead, sector fundamentals remain supportive:
- The National Energy Transition Roadmap (NETR)
- Large-Scale Solar (LSS) programmes
- Introduction of the Solar ATAP programme (effective 1 January 2026)
The Solar ATAP programme adds a fresh demand catalyst for Northern Solar’s C&I rooftop business, potentially accelerating project pipelines across Malaysia’s industrial and commercial sectors.
Management remains confident that scale execution, stronger project wins and expanding policy support will sustain growth momentum into FY2026.
