Kinergy Reports Breakthrough FY2025 As Revenue Surges Past RM500 Million And Business Shifts Toward Sustainable Energy

Kinergy has announced a transformative financial year for the period ending 31 December 2025 (FY2025), marking a major shift in the company’s identity and earnings profile. The Group surpassed the RM500 million revenue milestone for the first time, reporting RM513.2 million in revenue, an increase of 109.6% from RM244.8 million the previous year. Profit After Tax rose 36.9% to RM30.1 million. Beyond the strong financial results, FY2025 represents a deeper strategic change for Kinergy. The Group began the year operating primarily as an engineering services provider with an energy arm, but it ended the year as an energy-driven company supported by a strong engineering foundation.

Executive Deputy Chairman and Group Managing Director, Dato’ Lai Keng Onn, said that FY2025 proved the organisation’s ability to scale while maintaining operational discipline. He highlighted that Kinergy’s ability to double revenue while sustaining margins, expand into recurring income, and strengthen its resilience was critical. He noted that the partnership with B.Grimm marked the company’s evolution from an Engineering, Procurement, Construction and Commissioning (EPCC) contractor into an Independent Power Producer (IPP), a shift aligned with Kinergy’s long-term sustainable growth plans.

Dato’ Lai added that the strategic move into sustainable energy was always expected to reshape the Group’s future direction. In FY2025, the Sustainable Energy Solutions (SES) segment contributed 70% of Group revenue, and this contribution is projected to rise further in the coming years. He explained that Kinergy is no longer driven only by project-based earnings, but is actively building an energy business supported by ownership participation, recurring cashflows, and a well-established order book that offers long-term visibility. This marks a fundamental transition in Kinergy’s business model.

The SES segment underscored this shift with a strong performance in FY2025. It delivered RM360.1 million in revenue, representing a 191.5% year-on-year increase, and recorded RM48.4 million in segment profit, up 60% from the previous year. This growth was supported by effective execution of the Group’s flagship project — the PETRONAS gas engine power plant in Sabah and Labuan. The successful delivery of this complex, large-scale project strengthened Kinergy’s standing among major industry players.

FY2025 also marked Kinergy’s entry into power plant ownership and recurring income generation. The acquisition of Jati Cakerawala and the strategic partnership with B.Grimm Power, one of Asia’s top independent power producers, will enable Kinergy to benefit from EPCC earnings during project construction while also building a long-term platform for future collaborations. This partnership allows Kinergy to remain engaged throughout the asset lifecycle, helping the Group expand both project-based earnings and stable, recurring revenue streams over time.

Momentum continued to build through the final quarter of FY2025. In 4QFY2025, revenue reached RM191.4 million, representing a 141.1% year-on-year increase and marking the strongest quarterly result in Kinergy’s history. Profit Before Tax for the quarter rose 117.8% to RM17.0 million. Margins improved significantly, rising to 15.4% from 10.3% a year earlier, which contributed to gross profit of RM29.38 million, an 82.6% increase. This reflects Kinergy’s continued focus on execution excellence, cost management, and optimising its revenue mix.

Looking ahead, Kinergy enters the next financial year with strong multi-year earnings visibility. As at 31 December 2025, the Group’s energy segment order book stood at approximately RM1.03 billion, with an additional RM2.24 billion in active tenders. Across both business segments, Kinergy’s total pipeline amounts to about RM3.9 billion, laying a clear path for sustained growth in the years to come.