Pulau Pinang, 26 January 2026 – PGF Capital Berhad, a Main Market-listed and leading insulation producer in Southeast Asia, reported a solid set of financial results for its third quarter and nine-month period ended 30 November 2025, underpinned by resilient regulatory-driven demand across its core markets.
For the nine-month financial period (9MFY26), PGF Capital posted revenue of RM130.1 million, representing a 7.3% year-on-year increase from RM121.3 million in 9MFY25. The improvement was driven primarily by sustained demand for insulation products, particularly from Australia and New Zealand, where regulatory requirements continue to support construction and energy-efficiency spending.
Profit before tax (PBT) for 9MFY26 stood at RM26.9 million, broadly flat compared with RM27.0 million in the corresponding period last year. Earnings were affected by a mark-to-market unrealised loss of RM2.54 million arising from cross-currency swap facilities used to finance the Group’s insulation expansion, as well as a foreign exchange loss of RM1.22 million. Consequently, profit after tax (PAT) came in at RM18.0 million, compared with RM20.0 million in 9MFY25.
On a quarterly basis, 3QFY26 revenue rose 14.8% year-on-year to RM44.1 million, up from RM38.4 million in 3QFY25. PBT for the quarter increased to RM8.7 million, from RM8.4 million a year earlier, supported by stable operating performance and operational efficiencies, partially offset by the same unrealised currency-related losses.
Insulation Segment Remains Core Earnings Driver
The insulation segment continued to be PGF Capital’s primary revenue contributor, accounting for more than 99% of total revenue in 9MFY26. Segment revenue increased to RM129.7 million, from RM120.3 million in the previous year, reflecting stable and recurring demand from Oceania markets.
Segment PBT rose to RM32.5 million, compared with RM31.4 million in 9MFY25, highlighting improved operational efficiencies despite the impact of currency movements.
Outlook Supported by Regulation and Infrastructure Spending
Executive Director and Group Chief Executive Officer Mr Fong Wern Sheng (邝汶城) said the Group remains positive on its outlook for FY2026, citing continued regulatory support in key markets.
Demand in Australia and New Zealand is expected to remain firm, supported by housing-related initiatives, stricter building standards and energy-efficiency programmes. In Malaysia, recent policy measures announced under Budget 2026, including energy-efficiency regulations, carbon pricing mechanisms and green financing incentives, are anticipated to encourage wider adoption of insulation solutions, particularly among commercial and industrial users.
PGF Capital also expects public sector infrastructure development, especially in the transport and utilities sectors, to provide additional medium-term support for construction activity and demand for building-related products.
Beyond traditional insulation, the Group sees encouraging prospects for its mineral wool sandwich panels, which are positioned for high-performance applications such as data centres, following the successful attainment of SIRIM and BOMBA certifications.
Strong Balance Sheet Position
As at 30 November 2025, PGF Capital maintained a solid financial position, with a net gearing ratio of 0.32 times and net assets per share of RM1.43, providing the Group with financial flexibility to support future growth initiatives.
