Wasco Greenergy Positioned For Stronger Recovery Backed By Renewable Energy Expansion

Wasco Greenergy Berhad remains optimistic on its growth trajectory despite a softer first quarter FY2026, with management highlighting that its expanding renewable energy pipeline, resilient order book and regional growth initiatives continue to position the group well for stronger recovery ahead.

The group recorded revenue of RM54.4 million for the first quarter ended 31 March 2026 compared with RM61.4 million in the corresponding quarter last year, while profit before tax stood at RM4.9 million versus RM6.3 million previously. Net profit attributable to shareholders came in at RM4.1 million, with earnings per share easing to 0.82 sen from 1.24 sen.

In a recent briefing, management explained that the weaker quarter was mainly due to lower steam turbine deliveries and softer after-sales activities arising from overlapping festive periods. The company delivered 13 turbines during the quarter compared with 22 units in the previous corresponding quarter.

Despite the softer start, management noted that the first quarter is traditionally seasonally weaker, with stronger project execution and revenue recognition typically accelerating in the later quarters of the financial year.

The renewable energy segment continued to be the group’s core earnings driver, generating RM49.1 million in revenue compared with RM56.4 million previously. Segment profit stood at RM5.35 million against RM6.73 million a year earlier, while gross profit margin remained healthy at approximately 24%, reflecting continued operational resilience.

Meanwhile, the industrial energy and equipment segment delivered encouraging improvement. Revenue remained stable at RM5.24 million while segment profit improved to RM0.64 million from RM0.31 million previously, supported by stronger margin capture and operational efficiency.

A key highlight from the recent briefing was the strategic memorandum of understanding signed with Gas Malaysia to explore integrating biomass technology with natural gas infrastructure for long-term green steam supply projects.

Management said the collaboration could potentially unlock longer-term recurring income opportunities as industries gradually transition towards greener energy solutions. Gas Malaysia is expected to provide a customer shortlist within the coming month, followed by feasibility and tariff studies.

Operationally, the group is currently handling around 20 to 30 concurrent boiler projects alongside repair-shop activities, with project recognition based on milestone progress billing schedules.

The group’s outstanding order book remained strong at RM244.7 million, comprising RM220.7 million from renewable energy and RM24 million from industrial energy and equipment. Management expects approximately RM167.6 million to be recognised within FY2026, providing earnings visibility for the coming quarters.

Indonesia was also identified as a promising long-term growth market supported by PLN’s biomass co-firing initiatives, biodiesel mandates from B40 potentially towards B50, and abundant biomass feedstock availability.

Despite external risks such as geopolitical uncertainties and currency volatility, management reiterated confidence in exceeding FY2025 revenue levels, supported by the group’s healthy balance sheet, net cash position, disciplined execution and growing renewable energy opportunities across Southeast Asia.