KUALA LUMPUR: Mega First Corp Bhd's (MFCB) net profit fell to RM386.97 million for the financial year ended Dec 31, 2025 (FY25) from RM459.18 million in FY24 due mainly to the absence of non-recurring gains and lower construction profit.
The group said in a filing with Bursa Malaysia that the decline was also due to the absence of insurance claim income and expected credit loss write-back recorded previously, as well as higher share of losses from joint ventures and associates.
MFCB said the higher joint venture and associates' losses stemmed from Edenor's (Technology Group) capacity disruptions due to repairs, maintenance and upgrades, as well as gas supply disruptions following the Putra Heights pipeline explosion.
Broader headwinds included industry overcapacity, subdued demand and unfavourable crude palm oil export conditions in Indonesia.
Revenue declined 18.5 per cent to RM1.42 billion from RM1.74 billion previously, mainly due to lower construction revenue from service concession arrangements, which fell sharply to RM39.4 million from RM383.2 million following the completion of the Don Sahong fifth turbine project in 2024.
For the fourth quarter ended Dec 31, 2025, MFCB's net profit eased to RM118.50 million from RM141.72 million in the same quarter last year.
Revenue for the quarter declined to RM356.31 million from RM724.45 million previously, reflecting lower construction contribution.
On prospects, the diversified group said earnings from its renewable energy division, denominated in US dollar, are expected to remain resilient in 2026.
The resources division is expected to face continued intense competition from regional and domestic players, particularly from China, amid challenging market conditions.
Meanwhile, the packaging division plans to expand its customer base and improve plant efficiency to strengthen performance.
"In 2026, management's focus will be on preserving cash reserves, further nurturing and bolstering the renewable energy operations, and rationalising non-core business activities," it said.