Steel Hawk Bhd ended the first half of FY26 (1H26) in the red, posting a net loss of RM7.68 million compared to a RM9.24 million net profit a year earlier, as weaker revenue, project delays and higher execution costs weighed on earnings.
Revenue for 1H26 also fell 40.2% year-on-year to RM38.44 million from RM64.27 million, mainly due to lower revenue recognition from ongoing projects at different stages of completion.
The group said postponed oil and gas project commencements, as well as cancelled or terminated tenders by major oil companies, also delayed project awards and execution during the period.
For the second quarter, however, revenue surged 50.3% to RM17.72 million from RM11.79 million on stronger recognition from ongoing EPCC projects. However, Steel Hawk recorded a RM9.41 million net loss compared to a RM1.07 million net profit a year earlier.
Quarterly profitability was hit by higher raw material, fabrication and subcontracting costs, project overruns and provisions for foreseeable losses, compounded by prolonged execution timelines.
Executive Director Datuk Sharman K Michael said the group has tightened project cost and execution controls while expanding manpower and operational capacity in preparation for a stronger project pipeline.
As at July 31, Steel Hawk had 21 ongoing projects and a tender book of approximately RM575.8 million, comprising RM127.5 million in oil and gas opportunities and RM448.3 million from non-oil and gas projects.
