DRB-HICOM Bhd delivered a mixed set of results for the first quarter ended March 31, 2026 (1Q2026), with strong growth in mobility, banking and postal divisions offsetting a sharp decline in its property segment.
The group’s property segment recorded a 70.2% drop in revenue to RM13.89 million from RM46.64 million a year earlier. The decline was attributed to lower contributions from property development and construction activities, reflecting reduced project activity during the quarter. The segment, which also includes concession operations, saw weaker contributions from both residential and industrial developments.
Despite the contraction in property performance, DRB-HICOM’s overall revenue increased 15.7% year-on-year to RM4.76 billion, compared to RM4.11 billion previously. Profit before tax (PBT) more than doubled to RM192.40 million from RM92.62 million, while net profit attributable to shareholders rose to RM45 million from RM17.72 million.
The improvement in group earnings was driven primarily by stronger performance across its core operating segments, particularly mobility, banking and postal services.
The mobility segment remained the group’s largest contributor, generating RM3.62 billion in revenue, up 19.6% year-on-year. Growth was supported by higher Proton vehicle sales and contributions from the aerospace business following the acquisition of CTRM AeroSystems Sdn Bhd in December 2025.
Banking operations also performed better, with revenue rising 9.4% to RM583.36 million, supported by higher financing income and increased loan volumes. The postal segment posted a 7.9% increase in revenue to RM493.25 million, driven by stronger courier demand, logistics services and aviation-related operations such as in-flight catering and ground handling.
Meanwhile, the services segment recorded a slight decline of 1.2% to RM50.73 million due to lower vehicle inspection volumes during festive holiday periods.
Although the property segment remained weak, it still generated RM13.89 million in external revenue and posted a profit before tax of RM7.91 million, indicating continued but limited activity within the division.
Group-wide performance was further strengthened by robust vehicle sales. Proton sold 49,140 units in 1Q2026, marking a 40.1% year-on-year increase. The group also highlighted strong momentum in its electric vehicle segment, with the e.MAS 5 becoming Malaysia’s best-selling EV with 6,701 units sold year-to-date.
DRB-HICOM said its aerospace business continues to expand following the CTRM acquisition, while Pos Malaysia is focusing on network optimisation and digital transformation initiatives aimed at improving efficiency and reducing losses.
Looking ahead, the group expects Malaysia’s economy to remain resilient in 2026, supported by domestic demand. However, it acknowledged ongoing global uncertainties linked to geopolitical tensions. As a result, DRB-HICOM anticipates a moderate outlook for the financial year ending December 31, 2026, with continued emphasis on cost efficiency and digitalisation across its business segments.
Philippines