PROPEL GLOBAL BERHAD (“Propel Global” or the “Group”), a provider of oil and gas (“O&G”) services, announced its financial results for the first quarter ended 30 September 2025 (“Q1 FY2026”), recording revenue of RM17.9 million, compared to RM34.3 million in Q1 FY2025.
The O&G segment reported revenue of RM13.9 million and Profit Before Tax (“PBT”) of RM1.3 million, compared to RM20.3 million in revenue and RM1.4 million PBT in the same quarter last year.
The decline was primarily due to lower progress claims from Engineering, Procurement, Construction & Commissioning (“EPCC”) projects and the absence of a one-off trading transaction from the Rapid Transit System (“RTS”) project recognised in Q1 FY2025.
The Technical Services (“TS”) segment recorded revenue of RM2.2 million and Loss Before Tax (“LBT”) of RM0.7 million, compared to RM11.2 million in revenue and LBT of RM0.2 million in the preceding year corresponding quarter. The significant reduction stems from the completion of several key construction projects, resulting in lower progress claims.
Meanwhile, the Information & Communications Technology (“ICT”) segment posted revenue of RM1.4 million with LBT of RM0.2 million, versus revenue of RM2.8 million and PBT of RM0.6 million in Q1 FY2025. The variance is primarily due to the absence of the one-off service revenue recognised in the previous year, while the segment’s underlying operations remain stable.
The Others segment recorded LBT of RM6.5 million, compared to RM5.8 million in the same quarter last year, mainly attributable to corporate administrative expenses and fair value loss on quoted shares during the quarter.
Ms. Angeline Lee, Executive Director / Group Chief Executive Officer of Propel Global
“The first quarter reflects a period of transition in our EPCC and construction portfolios, coupled with the absence of non-recurring income that supported last year’s performance. Despite the challenging operating landscape, the Group has taken decisive steps to reinforce its foundation, including disciplined cost optimisation, refinement of our manpower structure, and a more selective approach to project bidding.
Our priorities remain centred on operational discipline, strengthening execution capabilities, and building a resilient pipeline of viable, high-quality projects. Engagement with clients across our O&G, TS and ICT segments continues to show positive traction, particularly in digital infrastructure and specialised engineering opportunities.
With a more optimised organisational structure and a strengthened talent bench, supported by rightsizing efforts and renewed focus on high-performing capabilities, alongside improved governance and increasing project visibility, we maintain a measured but optimistic outlook as activity levels gradually pick up.”
Malaysia’s macroeconomic environment continues to offer a constructive backdrop for the Group, supported by healthy domestic demand and improving external conditions. GDP is projected to grow between 4.0%–4.5% in 2026, while the National Budget 2026’s RM419 billion allocation, alongside the RM430 billion development expenditure under the 13th Malaysia Plan, reinforces multi-year investment cycles in infrastructure, utilities, transportation and housing; areas closely aligned with Propel Global’s technical services and engineering capabilities. The country’s public investment momentum, particularly across the oil and gas value chain, also supports medium-term activity for specialised O&G service providers.
Structural sector drivers remain intact across the Group’s operating segments. Malaysia’s HVAC industry is expected to be a key contributor to the Group’s future growth, with the domestic market projected to expand from USD1.17 billion in 2025 to USD1.47 billion by 2030, while national digitalisation programmes continue to broaden opportunities in enterprise technology and ICT solutions.
A key milestone achieved during the quarter was the RM70.0 million Letter of Acceptance awarded to Propel CMT Sdn. Bhd. for civil and structural works of a data centre project in Johor Bahru, with optional packages potentially raising the contract value to RM325.0 million, marking the Group’s strategic entry into the digital infrastructure space.
While Q1 FY2026 reflects a period of normalisation following project completions and last year’s one-off contributions, Propel Global remains focused on strengthening its execution capabilities, operational discipline and pipeline visibility. Backed by favourable national development priorities and rising opportunities across key sectors, the Group is driving its long-term strategy forward with focus and momentum
