Sime Reports Q1 FY2026 Net Profit of RM355 million

This was lower than the corresponding quarter of the previous financial year (Q1 FY2025), which benefitted from a one-off gain from the disposal of Malaysia Vision Valley (MVV) land. Nevertheless, the Group maintained a stable underlying performance despite ongoing market headwinds. This was supported by sustained revenue of RM18.03 billion compared with RM18.26 billion in Q1 FY2025.

The Group’s UMW division stood out, delivering a higher profit before interest and tax (PBIT) of RM261 million, an increase of 22 per cent, supported by steady demand in its automotive business.

For the quarter under review, the Industrial division recorded a PBIT of RM293 million, down 14.6 per cent from the previous corresponding quarter. Results were impacted by lower equipment sales in Australasia due to a shift in timing for mining and construction equipment deliveries, as well as lower translated PBIT due to the stronger Malaysian Ringgit against the Australian dollar. The division’s performance was supported by data centre projects in Malaysia, which drove strong engine sales. The China market also recorded higher revenue on the back of increased engine sales.

The Motors division reported a PBIT of RM126 million in Q1 FY2026, a decrease of 33.7 per cent compared to the same period last year. Weaker assembly performance in Malaysia, and softer commercial vehicle revenue and margins in Australasia impacted results. On the other hand, improved margins in Hong Kong, Macau and Taiwan boosted earnings.

“Market conditions remain tough, but our core businesses have continued to show resilience, particularly UMW, which continues to deliver strong results. This is reflected by our overall core earnings which remained broadly consistent year-on-year, from RM359 million in Q1 FY2025 to RM335 million in Q1 FY2026.

“The Group’s diversified portfolio continues to demonstrate its strength. While some regions faced headwinds, positive momentum in areas such as EV sales and data centre-driven projects helped offset these challenges. As we move forward, we are focused on operational discipline, cost management and delivering value for our stakeholders. The fundamentals of our businesses remain sound, and we are well-positioned for this financial year,” said Dato’ Jeffri Salim Davidson, Sime’s Group Chief Executive Officer.