Advancecon Holdings Berhad (前进控股有限公司) (“Advancecon” or “the Group”) (Bursa: 5281), an established provider of earthworks and civil engineering services in Malaysia, today announced its unaudited financial results for the first quarter ended 31 March 2026 (“Q1 FY2026”), reflecting improving operational execution within its core construction business supported by stronger project delivery momentum and recently secured contract wins.
Profit attributable to owners of the Company increased 85.8% year-on-year to RM1.81 million, while the Group continued to generate positive operating cash flow amid a competitive operating environment.
For Q1 FY2026, the Group recorded revenue of RM97.45 million, compared to RM101.21 million in Q1 FY2025, while profit before taxation remained resilient at RM1.85 million despite continued diesel and operating cost pressures during the quarter. Earnings per share increased to 0.32 sen.
The Group’s performance reflects continued focus on execution discipline, selective project participation, and cost management initiatives aimed at strengthening earnings quality and cash flow sustainability.
The Construction and Support Services segment remained the Group’s primary earnings contributor, recording revenue of RM50.0 million and contributing 51.3% of Group revenue. Segment profit before taxation strengthened significantly to RM5.0 million compared to RM0.3 million in Q1 FY2025, supported by improved execution progress from projects secured in the second half of 2025, tighter cost controls, disciplined project management, and gains arising from machinery disposals.
The stronger segmental performance reflects the Group’s continued emphasis on projects with better margin visibility, manageable execution risks, and stronger operational cash flow characteristics.
The Quarry segment contributed RM46.1 million in revenue during the quarter, with performance affected by softer quarry-related activities following the completion of certain projects and continued competitive market conditions. The Group is closely reviewing its cost structure, utilisation efficiency and project mix to improve the segment’s contribution.
Meanwhile, the Green Energy segment recorded lower electricity generation during the quarter due to temporary operational interruptions at certain facilities. While the major issues have been resolved, the Group continues to work with the relevant technical parties on minor rectification works to restore full generation stability and strengthen preventive maintenance, as part of its ongoing operational optimisation efforts.
Compared to the immediate preceding quarter, the Group recorded lower revenue of RM97.45 million against RM105.75 million in Q4 FY2025, while PBT moderated from RM3.02 million to RM1.85 million. Profit attributable to owners stood at RM1.81 million compared to RM3.07 million in Q4 FY2025, mainly due to higher diesel prices and losses recorded in the Quarry and Green Energy segments.
Despite near-term cost pressures, Advancecon continued to generate positive operating cash flow, with net cash generated from operating activities improving to RM12.82 million in Q1 FY2026 compared to RM10.65 million in the corresponding quarter last year.
The Group remains focused on operational cash generation, working capital discipline, and strengthening balance sheet resilience as part of its long-term execution strategy.
Mdm. Phum Boon Eng, Managing Director of Advancecon Holdings Berhad, said, “Q1 FY2026 reflects improving operational execution across our core construction business as projects secured in recent quarters continue to progress. While the operating environment remains competitive, particularly in relation to diesel and operating costs, the Group has remained disciplined in project selection, cost management, and operational execution.”
“Our strengthened order book of approximately RM940 million provides improved visibility for our core construction activities moving forward. We remain focused on projects with stronger execution visibility, acceptable risk profiles, and sustainable cash flow characteristics as we continue to prioritise long-term earnings resilience over volume-driven growth.”
Moving forward, Advancecon will continue prioritising operational discipline, execution quality, and selective tendering as the Group navigates an evolving construction environment.
The Group believes demand for earthworks, civil engineering, industrial infrastructure, and site preparation activities will continue to be supported by ongoing industrialisation trends, infrastructure investments, and Johor’s emergence as a strategic economic corridor.
With a strengthened order book, improving construction execution momentum, and established operational capabilities across infrastructure, township, industrial, and renewable-energy-related developments, the Group remains focused on strengthening earnings quality, improving cash flow generation, and building long-term shareholder value sustainably.
