Sime Reports Q2 FY2026 Net Profit of RM431 million

The Group’s revenue for the quarter increased by seven per cent to RM19 billion, compared with RM17.7 billion in the previous financial year (Q2 FY2025).

During the quarter under review, the Motors division recorded a profit before interest and tax (PBIT) of RM209 million, an increase of 77.1 per cent from the previous corresponding quarter. This performance was mainly due to stronger profits across the division’s Asian operations, driven by its China business and higher revenue from assembly activities in Malaysia. Singapore also delivered increased profit, supported by stronger vehicle sales during the quarter.

On the Industrial front, PBIT decreased by 11 per cent to RM300 million in the current quarter, mainly due to lower contributions from the division’s Australasia and Malaysia operations. The decline in Australasia was attributable to lower profits from product support.

The UMW division recorded a PBIT of RM269 million, a marginal decline from the previous corresponding period. Profits from the automotive business declined slightly due to lower parts sales and higher operating expenses.

For the first six months of FY2026 (1H FY2026), the Group reported a net profit of RM786 million, compared with RM1.1 billion in the corresponding period, which had benefitted from a gain on the disposal of Malaysia Vision Valley (MVV) land. Excluding the one-off gain in FY2025, core net profit for 1H FY2026 increased to RM766 million compared with RM664 million in the same period last financial year.

“I’m pleased that our efforts have borne fruit as we crossed the half-way mark of FY2026, delivering an increase in core net profit of RM100 million compared with the same period last financial year. These are solid results delivered against a challenging backdrop. While the Industrial division experienced some headwinds, the resilience of our Motors division and continued strong contributions from Sime UMW helped sustain overall performance.

“We have remained focused on strengthening our balance sheet, generating healthy cash flow and reducing debt. As a result, there has been significant reduction in our finance costs of close to RM100 million during the first six months of this financial year. We will continue to prioritise financial discipline while redoubling our efforts to maintain market share against stiff competition,” said Dato’ Jeffri Salim Davidson, Sime’s Group Chief Executive Officer.

Sime announced an interim dividend of 3 sen per share for the first half of FY2026.