Vestland’s 2Q net profit rises 12% on higher design-and-build revenue

PETALING JAYA (Aug 21): Vestland Bhd’s net profit rose 11.8% to RM11.95 million for the second quarter ended June 30, 2026 (2QFY2026), from RM10.68 million a year earlier, as the construction group recorded higher revenue from its design-and-build segment.

Revenue increased 17.4% to RM250.24 million from RM213.18 million, while profit before tax rose 10.0% to RM15.82 million from RM14.38 million, according to Vestland’s Bursa Malaysia filing on Friday (Aug 21).

Design-and-build revenue drives growth

Vestland said the higher quarterly revenue was mainly attributable to its design-and-build segment, supported by contributions from the Pinnacle Ara Damansara and Council Home Taman Desa projects, as well as projects secured in 2026 — the Kajang Industrial Park and Armani Hallson KLCC projects.

Design-and-build revenue increased 23.3% to RM199.66 million in 2QFY2026 from RM161.87 million a year earlier, accounting for 79.8% of quarterly revenue.

Revenue from civil engineering works rose to RM30.85 million from RM22.37 million, while revenue from the build segment fell to RM19.74 million from RM28.94 million.

The group said the higher quarterly pre-tax profit was mainly due to higher revenue and gross profit. This was partly offset by higher administrative and operating expenses, mainly due to increased staff costs, and higher finance costs, which mainly comprised interest expenses on borrowings used for working-capital purposes.

Sequential improvement

On a quarter-on-quarter basis, revenue rose 25.4% from RM199.48 million in 1QFY2026, while pre-tax profit increased 44.9% from RM10.92 million.

Vestland attributed the higher revenue mainly to increased design-and-build revenue, following higher completion of work on ongoing projects.

The group said the higher pre-tax profit was mainly due to higher gross profit and lower administrative and operating expenses.

RM1.3b order book

For the first six months of FY2026, Vestland’s net profit increased 8.3% to RM20.03 million from RM18.50 million a year earlier, while revenue grew 21.4% to RM449.72 million from RM370.58 million.

The group said it had an outstanding order book of approximately RM1.3 billion as at June 2026, which it said supports earnings visibility in the coming years.

Vestland said it will continue to pursue design-and-build opportunities across the residential, industrial and infrastructure sectors.

Barring unforeseen circumstances, the board is cautiously optimistic about the group’s prospects for 2026.

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