Kelington Group: Laying the groundwork for 2027

Kelington’s 1H26 earnings were in line with expectations, but the stronger story lies ahead. A record RM2.0bil order book, increasingly weighted towards higher-margin advanced engineering projects, should drive a seasonally stronger 2H26.

Meanwhile, its RM7.5bil tender book provides healthy earnings visibility into 2027. “Our FY27F-28F earnings remain 38%-58% above consensus, reflecting stronger assumptions for contract wins and execution than currently priced by the market,” says analysts at AmBank.

Kelington Group Bhd posted a higher net profit of RM41.34mil for its second quarter ended Jun 30, 2026 (2Q26), compared to RM32.89mil a year earlier.

Kelington Group

It said the improvement in profitability was largely driven by stronger revenue contributions from key projects across the group.

Additionally, the group recognised the reversal of a RM2.3mil impairment relating to projects in Taiwan, which further supported the quarter’s profitability.

Revenue for the quarter came in at RM344.42mil, marking a 22% year-on-year rise from RM282.02mil in 2Q25, mainly due to higher revenue contributions from ongoing projects, the group said.

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