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PETALING JAYA (April 24): Cahya Mata Sarawak Bhd (Cahya Mata) posted a sharply lower profit for the financial year ended Dec 31, 2025, with profit attributable to owners falling 48.8% to RM65.7 million from RM128.2 million the prior year, as headwinds in its Oiltools division and pre-commercialisation losses at its Phosphates plant weighed on headline results.
Group revenue declined 7.3% to RM1.11 billion from RM1.20 billion in FY2024.
Basic earnings per share dropped to 6.11 sen from 11.93 sen, while the board has proposed to maintain the FY2025 dividend at 3.0 sen per share — the same as FY2024 — reflecting its confidence in the group's longer-term earnings trajectory.
However, the group was candid that the headline numbers materially misrepresent underlying performance.
A RM36.3 million unrealised, non-cash foreign exchange loss on intercompany financing — against RM8.9 million in FY2024 — compressed reported profitability by an additional RM27.4 million year-on-year.
Stripping out this non-operational charge, the adjusted profit before tax (PBT) would have been approximately RM145.1 million, against the reported RM108.8 million.
Following a functional currency change at the Phosphates subsidiary from USD to Malaysian ringgit in October 2025, such translation movements are not expected to recur.
Property arm posts 50% revenue surge on BCCK 2
Cahya Mata's Property Development SBU (Strategic Business Unit) is the standout positive in an otherwise mixed year.
Revenue surged 49.8% to RM109.5 million from RM73.1 million in FY2024, driven by the commencement of progressive revenue recognition on the Borneo Convention Centre Kuching 2 (BCCK 2) — a RM550 million contract awarded in April 2025 and progressing ahead of schedule.
Construction activity is expected to accelerate materially through FY2026 as the project reaches higher-intensity milestones, making it the dominant near-term revenue driver for the SBU.
Despite the revenue growth, the SBU's PBT fell to RM5.9 million from RM21.6 million, entirely due to the absence of a one-off high-margin land disposal transaction that had inflated FY2024 results.
Underlying residential performance was steady: Cahya Intan Phase 2 achieved 81% take-up with construction exceeding 80% completion, while workers accommodation at Samalaju Lodges maintained 79% occupancy with procurement savings of RM1.5 million.
The group also flagged the planned launch of a GreenRE/GBI-certified apartment project at Sungai Maong with a gross development value (GDV) of RM155 million, along with continued landbank monetisation in Kuching and Bintulu.
Strategically, the Property Development SBU is master-planning three major landbank parcels — Isthmus, Samalaju and Bandar Samariang — to underpin a long-duration development pipeline, and is actively pursuing opportunities beyond Sarawak to reduce geographic concentration risk.
Cement at record; Phosphates approaching commercialisation
Cahya Mata's core Cement SBU delivered one of its highest-ever results, with revenue rising to RM665.1 million and PBT climbing to a record RM160.6 million, supported by sustained Sarawak infrastructure demand, lower imported clinker costs and improved Portland Limestone Cement (PLC) sales volumes.
The RM600 million-funded Mambong Clinker Line 2 — a 6,000 MT/day expansion that will more than double clinker capacity to 1.9 million metric tonnes annually — remains on track for completion in 2027, which will eliminate imported clinker dependency and materially improve cost structure.
Its Phosphates plant in Samalaju achieved a pivotal milestone with the restoration of electricity supply in September 2025, enabling commissioning to resume.
Full commercial Yellow Phosphorus production — which would make Cahya Mata Malaysia's sole manufacturer of the critical industrial input — is targeted by 3Q2026.
Cahya Mata’s Phosphates SBU recorded a pre-tax loss of RM145.9 million in FY2025, but the group expects this to narrow sharply and ultimately reverse as commercial operations ramp up.
Balance sheet strong heading into FY2026
The group maintained a robust financial position. Cash and bank balances stood at RM750.8 million — exceeding total borrowings of RM310.2 million and producing a net cash surplus of RM440.6 million.
Gearing remained negligible at 0.09 times. Total equity held firm at RM3.6 billion and net assets per share at RM3.16.
Cahya Mata’s board described FY2026 as the beginning of a "sustained multi-year earnings recovery cycle," with three converging catalysts: the Phosphates plant transitioning from pre-commercialisation losses to earnings contributor; BCCK 2 construction accelerating; and the continued advance of Clinker Line 2 toward its 2027 completion.
The group's total capital commitments as at Dec 31, 2025 stood at RM1.19 billion — the most significant investment cycle in Cahya Mata's recent history.
Cahya Mata's 51st Annual General Meeting is scheduled to be held this year, with the proposed dividend of 3.0 sen per share subject to shareholder approval.
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