MHB Q1 2025 Profit Up 17.4% to RM12.2mil, Revenue Down 53.7% to RM453.1mil

Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) reported a 17.4% increase in net profit to RM12.2mil in Q1 2025, driven by growth in both its heavy engineering and marine segments. However, revenue more than halved to RM453.1mil due to lower revenue contribution from the heavy engineering segment. The company's earnings per share rose to 0.80 sen from 0.70 sen a year ago.

Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has released its financial results for the first quarter of 2025, showing a 17.4% increase in net profit to RM12.2 million, driven by growth in both its heavy engineering and marine segments. However, revenue more than halved to RM453.1 million due to lower revenue contribution from the heavy engineering segment. The company's earnings per share rose to 0.80 sen from 0.70 sen a year ago [1].

The Heavy Engineering segment recorded a revenue of RM320.2 million in the current quarter, a decrease of RM548.9 million compared to RM869.1 million in the corresponding quarter. The decline was mainly due to several ongoing projects nearing completion, resulting in lower activity and revenue, while the newer projects are still at early stages. Despite the lower revenue, the segment reported an operating profit of RM2.2 million in the current quarter, an improvement from RM0.3 million in the corresponding quarter [1].

Conversely, the Marine segment recorded a revenue of RM132.9 million in the current quarter, an increase of RM17.5 million compared to RM115.4 million in the corresponding quarter as a result of higher conversion activities. In tandem with the higher revenue, the segment posted an operating profit of RM17.4 million in the current quarter, RM3.6 million higher compared to an operating profit of RM13.8 million in the corresponding quarter [1].

Managing Director & Chief Executive Officer, Mohd Nazir Mohd Nor, commented on the challenges posed by the ongoing trade war and potential tariff escalations, stating that these developments are prompting a more cautious investment climate. Despite this, the Heavy Engineering segment remains supported by a healthy order book and growing opportunities in the new energy sector. Meanwhile, the Marine segment is enhancing yard capabilities, exploring strategic partnerships, and expanding its market presence to secure more high-value repair and conversion projects [1].

References:
[1] https://www.marketscreener.com/quote/stock/MALAYSIA-MARINE-AND-HEAVY-6873047/news/Malaysia-Marine-and-Heavy-Engineering-MHB-PRESS-RELEASE-Q1-2025-50069205/
[2] https://www.offshore-mag.com/renewable-energy/news/55292541/equinor-equinor-says-batyk-2-and-3-project-financing-secured
[3] https://www.marketscreener.com/quote/stock/CAVCO-INDUSTRIES-INC-8965/news/Cavco-Industries-Inc-Reports-Earnings-Results-for-the-Fourth-Quarter-and-Full-Year-Ended-March-29-50044205/