SHAH ALAM: Leading homegrown power distribution specialist manufacturing low voltage (LV) and medium voltage electrical distribution equipment, Powerwell Holdings Bhd’s revenue jumped 116.8% year-on-year (YoY) to RM35.9 million for the first quarter (Q1) ended June 30, 2025 (FY26) from RM16.6 million a year ago.
This was mainly attributed to higher deliveries in all the geographical locations coupled with the contribution from the newly acquired fire-suppression systems subsidiaries.
Powerwell’s gross profit margin also rose to 27.3% for Q1 FY26 versus 24.0% last year, reflecting improved utilisation and the contributions from higher-end projects with better margins.
In tandem with the top-line and gross profit margin improvements, the group’s Q1 FY26 net profit surged 3.5-fold to RM4.2 million versus RM1.2 million a year ago.
Managing director Catherine Wong Yoke Yen said the company is positive to start FY26 on a solid footing amidst the volatile global market environment.
“The uncertainties in the global economy encountered further headwinds and volatility following a series of announcements on revised tariff measures.
“We are mindful of challenges ahead and remain excited about our prospects as Powerwell is riding on multi-sector tailwinds, particularly from the data centre, infrastructure and renewable energy segments.
“We continue to see opportunities in the data centre industry, where the vast total addressable market for the mechanical and electrical (M&E) space provides a strong growth runway for the years ahead,“ she said in a statement.
Wong said the 13th Malaysia Plan (13MP), with approximately RM430 billion allocated for development expenditures, is expected to spur activity, including infrastructure development.
“These positive drivers bode well for us given our leading position and established track record. As of end-June 2025, our outstanding order book stands at RM117.0 million,” she said.
To recap, the group had in June 2025 and July 2025 secured data centre jobs in Indonesia worth RM8.3 million and Malaysia worth RM16.6 million respectively, which are expected to contribute to the group’s earnings in the current financial year.
“Our recent investment in fire-suppression systems subsidiaries has already begun to bear fruit and has provided the maiden contribution in the current quarter. The group is building on this positive momentum and continues to explore more synergistic mergers and acquisitions (M&A) to accelerate growth.” Wong said.
On a quarter-on-quarter (QoQ) basis, Q1 FY26 revenue stood at RM35.9 million vis-à-vis RM47.5 million in the immediate preceding quarter (Q4 FY25), while net profit came in at RM4.2 million versus RM7.5 million in Q4 FY25.
This was predominantly owing to higher deliveries completed in the immediate preceding quarter. The fluctuations in performance are anticipated as part and parcel of the Group’s project-based business model.