VS Industry Bhd swung into the red in the first nine months of FY26 (9M26), posting a net loss of RM31.9 million as weak global consumer demand, customer cost-cutting measures and ongoing trade uncertainties weighed heavily on orders and factory utilisation.
The electronics manufacturing services provider reported revenue of RM2.65 billion and a net loss of RM31.9 million for 9M26 compared to revenue of RM2.93 billion and a net profit of RM69.7 million a year earlier.
For the third quarter ended April 30, 2026 (3Q26), VS Industry recorded a net loss of RM32.9 million on revenue of RM804 million versus a net profit of RM23.8 million and revenue of RM909.4 million in 3Q25.
Managing Director Datuk SY Gan said the operating environment remained highly challenging amid evolving global trade policies, including ongoing US investigations into electronics-related tariffs, as well as supply chain disruptions stemming from tensions in the Middle East.
He said soft consumer sentiment globally continued to dampen orders from key customers, resulting in lower utilisation of production facilities and weaker profitability due to under-absorption of fixed costs. The group’s operations in the Philippines also remain below breakeven utilisation levels.
Despite the near-term headwinds, Gan said the group is seeing early signs of improving order flow heading into the final quarter of FY26.
However, he cautioned that order visibility remains limited as customers continue to adopt a cautious approach towards procurement and inventory management.
“Looking ahead, the board expects FY26 performance to be weaker than the preceding year, although the group remains focused on cost control, operational efficiency and lean manufacturing initiatives,” he said.
