YTL Corp’s property and construction divisions support 3QFY2026 revenue growth as net profit declines

PETALING JAYA (May 29): YTL Corp Bhd recorded higher revenue for the third quarter ended March 31, 2026 (3QFY2026), supported by stronger contributions from its property, construction and selected infrastructure-related operations, although overall earnings were weighed down by softer performance in several other business segments.

It said in its Bursa filing that for 3QFY2026, group revenue rose 3.4% to RM7.57 billion from RM7.32 billion a year earlier. However, net profit attributable to shareholders declined 24.7% to RM325.99 million from RM432.63 million previously, translating into earnings per share of 2.88 sen versus 3.93 sen a year ago. 

Profit before tax fell to RM861.63 million from RM987.87 million, while profit for the period eased to RM629.23 million from RM744.50 million in the corresponding quarter last year.

The group said the quarter’s performance was supported by higher contributions from selected operating segments, including its property investment and development, construction, cement and data centre-related businesses, although this was partially offset by weaker results from other divisions, particularly in utilities and telecommunications. 

For the cement and building materials segment, revenue and profit before tax improved on higher turnover in the ready-mixed concrete and drymix divisions, driven by demand for high-grade, bespoke concrete products and continued cost-efficiency measures, including greater use of renewable energy and waste heat recovery.

Within property investment and development, YTL Corp said revenue was lower due to the absence of contributions from a completed office building sale and reduced contributions from the Brabazon project in the United Kingdom, but profit before tax improved on unrealised foreign currency translation gains on foreign currency-denominated borrowings and lower finance costs at YTL Hospitality REIT following a decline in Australian dollar interest rates. 

Construction revenue declined year-on-year, reflecting the completion of works on a major external contract, although the segment reported a lower loss before tax in the current quarter due to better margins.

The group also highlighted continued growth in its data centre operations, where revenue and profit before tax rose on the progressive completion and occupancy ramp-up of additional data halls. 

Hotel operations recorded higher revenue, supported by increased occupancy and stronger average room rates across key properties, although quarterly profit before tax was slightly lower on reduced contributions from Niseko Village K.K. in Japan.

By contrast, the utilities segment recorded higher revenue but lower profit before tax, mainly due to weaker contributions from power generation and telecommunications, partly offset by stronger performance in water and sewerage and data centres. 

The group said power generation earnings were affected by lower generation units sold, the strengthening of the ringgit against the Singapore dollar and lower retail and vesting margins, while the telecommunications division saw lower revenue and a wider loss before tax due to reduced project revenue. 

STM-related water and sewerage operations benefited from tariff adjustments and a more supportive regulatory outcome for Wessex Water following the Competition and Markets Authority’s final determination in the UK.

For the nine months ended March 31, 2026 (9MFY2026), YTL Corp posted net profit attributable to shareholders of RM1.11 billion, compared with RM1.35 billion a year earlier, while cumulative revenue slipped marginally to RM22.80 billion from RM23.15 billion. Profit before tax for the period declined to RM2.90 billion from RM3.18 billion.

As at March 31, 2026, net assets per share attributable to ordinary equity holders improved to RM1.58 from RM1.52 as at June 30, 2025. The group’s balance sheet remained substantial, with total assets standing at RM98.71 billion as at end-March 2026, up from RM97.94 billion at the end of the previous financial year. 

Cash and bank balances and fixed deposits totalled RM14.48 billion, while total borrowings and debt securities amounted to RM52.32 billion, of which RM6.17 billion were current and RM46.15 billion non-current. 

Total equity attributable to shareholders increased to RM18.39 billion from RM17.18 billion previously, while total equity including non-controlling interests rose to RM28.65 billion from RM26.72 billion.

During the period, YTL Corp issued new shares under its Employees’ Share Option Scheme and via the exercise of Warrants 2025/2028, raising additional equity capital and contributing to the increase in share capital and equity attributable to owners of the parent. 

The group also paid an interim dividend of 5.0 sen per share on Oct 23, 2025, in respect of the financial year ended June 30, 2025. No dividend was declared for the current quarter.

In its outlook statement, YTL Corp said its operating segments are expected to continue performing satisfactorily for the remaining quarter of FY2026, supported by existing order books and ongoing operational activities, barring unforeseen circumstances. 

The group noted that cement demand is expected to remain satisfactory over the medium to long term, supported by industrial and commercial construction activity and infrastructure initiatives such as the Johor–Singapore Special Economic Zone, although it cautioned that energy and freight cost volatility could weigh on margins in the near term.

YTL Corp also said it is positioning to capitalise on growth in data centre and digital infrastructure demand, including plans to expand its green data centre park in Kulai and investments in digital banking and artificial intelligence via Ryt Bank and YTL AI Labs. 

It added that, despite global economic and geopolitical uncertainties, its diversified portfolio in utilities, construction, property, hospitality and digital infrastructure is expected to remain resilient due to the essential nature of many of its operations.

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