KUALA LUMPUR: HSS Engineers Bhd posted a modest second quarter profit gain, yet a sharp sequential earnings jump points to gathering momentum across its project portfolio.
Net profit for the three months ended June 30, 2026 climbed 3.9 percent year-on-year to RM6.8 million from RM6.6 million. Earnings per share edged up to 1.34 sen from 1.29 sen. Revenue, however, dipped 4.8 percent to RM54.9 million from RM57.7 million.
The quarter-on-quarter picture tells a different story. Revenue expanded 19.4 percent while pre-tax profit soared 68.7 percent to RM9.4 million. Gross profit rose 27.7 percent.
Executives attributed the improvement to stronger revenue recognition as projects moved deeper into delivery stages.
Project management remained the largest revenue driver, contributing RM24.6 million, up 2.2 percent from a year earlier. Consulting work for the Davao Public Transport Modernisation Project in the Philippines underpinned that segment. Malaysian revenue grew 2.8 percent to RM50.7 million.
For the first half, net profit jumped 29.8 percent to RM10.6 million from RM8.1 million a year prior. Revenue stood at RM101 million, down from RM109.3 million.
The group carried an unbilled order book of RM2.2 billion as of June 30, offering earnings visibility stretching up to eight years. Project management represented roughly 80 percent of that backlog. Engineering design accounted for 13.1 percent and construction supervision 6.5 percent.
An active tender book of about RM480 million provides additional replenishment opportunities, according to the company.
Executive vice-chairman Tan Sri Ir Kuna Sittampalam called the half-year results evidence of a resilient business model and strengthening earnings trajectory. He said the immediate focus involves converting the RM2.2 billion backlog through disciplined execution while pursuing new contracts.
Kuna pointed to sustained optimism around Malaysian infrastructure spending, particularly in transportation, rail, water, ports and renewable energy. The group also plans to build regional presence and develop capabilities in digitalisation, AI-enabled solutions and other technology-driven engineering services.
