Ibraco Bhd saw its net profit fall 37.2% year-on-year to RM27.7 million in the first half of FY26 (1H26) from RM44.1 million, as lower construction revenue and the absence of a sizeable one-off land compensation recorded a year earlier weighed on earnings.
Revenue for 1H26 also declined 14% to RM324.4 million from RM377.1 million, reflecting softer construction contributions following the completion of several infrastructure projects, partly offset by stronger property development revenue.
For the second quarter, net profit more than halved to RM14.3 million from RM30.5 million a year earlier, when earnings had benefitted from one-off compensation for land acquired by the government. Quarterly revenue slipped 15.2% to RM163.6 million.
Property development remained Ibraco’s largest quarterly contributor, with revenue rising 8.6% to RM83.5 million, while construction revenue fell to RM61.3 million from RM103.1 million.
Manufacturing provided some support, with revenue more than doubling to RM11.1 million from RM4.7 million on stronger contributions from ready-mixed concrete, premix and steel pipe activities.
Group Managing Director Datuk Chew Chiaw Han said Ibraco remains supported by steady domestic demand and continued development spending in Sarawak, while key projects including The NorthBank, Arden City and Residensi NewUrban continue to progress.
The group said its unbilled property sales and outstanding construction order book continue to provide forward earnings visibility as it pursues new opportunities across East and West Malaysia.
