YTL 1HFY2026 earnings hit by lower power prices, Malayan Cement bright spot

KUALA LUMPUR (Feb 27): YTL Corp Bhd (KL:YTL) net profit fell 21.01% in the six months ended December (1HFY2026), dragged by lower electricity sale prices and as its construction saw completion of a major contract.

Net profit came in at RM784.51 million or 6.8 sen per share, down from RM913.72 million or 8.29 sen per share, its filing showed.

The group's half-year revenue slipped 3.82% to RM15.23 billion, from RM15.83 billion.

On a quarterly basis, YTL's net profit in 2QFY2026 fell 24.48% year-on-year but rose 26.42% quarter-on-quarter to RM438.03 million.

Quarterly revenue fell 5.86% y-o-y and 0.72% q-o-q to RM7.59 billion.

The weak power sector performance was reflected in the earnings of its 52.46%-owned YTL Power International Bhd (KL:YTLPOWR), where 2QFY2026 net profit fell 43.13% to RM436.56 million or 5.06 sen per share, although revenue fell just 7.51% to RM5.25 billion.

As a result, YTL Power's half-year net profit fell below the billion-ringgit mark at RM937.13 million, down 24.32% year-on-year, while revenue fell 6.6% to RM10.61 billion. It declared no dividend in the quarter.

Meanwhile, the 59.25% indirect-owned Malayan Cement Bhd (KL:MCEMENT) continued its strong earnings trend with 26.15% rise in 2QFY2025 net profit to RM232.98 million or 16.89 sen per share, as revenue rose 9.46% to RM1.26 billion.

This led Malayan Cement's 1HFY2025 net profit to rise 33.76% to RM433.55 million or 31.63 sen per share, more than the 6.63% rise in half year revenue to RM2.48 billion. It declared a six sen dividend per share, up from five sen a year ago.

On the group's prospects, YTL pointed to the construction of its 600MW gas and hydrogen-ready power plant in Pulau Seraya, as well as the first phase of its 500MW solar farm that would co-power its 600MW data centre park.

In the water sector, final decision on the UK regulator's allowed costs for the country's water industry is expected in March 2026, following favourable provisional findings in October.

It also expects resilient demand in the cement segment, as well as a stable hospitality sector.

"The group is proactively taking steps to ensure that its construction projects are on track and to replenish its order book despite the challenges faced in a competitive landscape," it added.

YTL shares slipped four sen or 2.04% at RM1.92 ahead of the announcement, giving it a market capitalisation of RM22.4 billion. The stock is down 5.88% this year.

YTL Power shares slipped 7.03% or 22 sen on Thursday to RM2.91, its lowest in 10 months, giving it a market capitalisation of RM25.3 billion.

Malayan Cement shares closed eight sen or 0.95% higher at RM8.54 to near its decade high ahead of the results filing, giving it a market capitalisation of RM11.87 billion.

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