Founder Group (NASDAQ:FGL) Shares Plunge 35.5% as Execution Risks Undermine Renewable Energy Ambitions

Founder Group (NASDAQ:FGL) shares plummeted to a record low on September 26, 2025, with an intraday decline of 39.78%. The stock has now fallen 35.50% in a single session, marking a 55.88% drop over three consecutive days. The sharp selloff reflects mounting investor skepticism about the company’s ability to translate its high-profile renewable energy projects into sustainable profitability.

Recent developments highlight Founder Group’s aggressive expansion in Malaysia’s green energy sector, including a RM1.16 billion (USD276 million) solar-plus-storage facility in Sarawak and RM17.4 billion (USD4.1 billion) in solar EPCC contracts. The company also unveiled AI-powered drone technology for solar farm inspections and a USD4.5 million floating solar project. While these initiatives align with global trends in smart energy solutions, their execution risks and capital intensity remain unproven, casting doubt on their near-term impact on earnings.

The stock’s underperformance contrasts with the scale of its announced projects. Founder Group’s revenue has declined 39% year-over-year, a stark reversal from its 259% cumulative growth over the prior three years. A price-to-sales ratio of 0.8x—well below the industry average of 1.4x—underscores investor concerns about the company’s ability to sustain momentum. Analysts have flagged execution risks, including regulatory delays and rising operational costs, as critical challenges to its long-term viability.

Strategic partnerships with entities like GCL Systems Integration Technology Co. and Planet QEOS Sdn. Bhd. aim to leverage Malaysia’s renewable energy incentives and AI-driven innovations. However, the success of these collaborations hinges on market demand for emerging technologies and efficient project execution. Investors remain unconvinced that Founder Group can consistently convert its ambitious projects into profitable operations, particularly as the sector faces policy uncertainties and supply chain disruptions.

The selloff appears to reflect a broader risk-off sentiment toward high-growth, capital-intensive renewable energy firms. While Founder Group’s initiatives suggest a strategic pivot toward large-scale infrastructure, the market is discounting future cash flows amid fears of prolonged underperformance. For the stock to stabilize, the company must demonstrate consistent project delivery, achieve profitability, and align with industry growth forecasts. Until then, investor caution is likely to persist.