Kossan Rubber Industries (KLSE) Q2 2026 earnings summary

Executive summary

• Revenue for 1H26 rose 19.51% year-over-year to RM1.04 billion, with profit before tax up 45.13% to RM124.4 million and profit after tax up 55.42% to RM104.8 million.

• All divisions posted higher revenue and profit, led by the Gloves division, which saw a 21.02% revenue increase and a 58.91% jump in profit before tax year-over-year.

• Sequentially, 2Q26 revenue grew 20.95% and profit before tax surged 69.07% from 1Q26, driven by higher average selling prices and improved production efficiencies.

Financial highlights

• Net assets per share increased to 150.54 sen as at 30 June 2026 from 146.18 sen at 31 December 2025.

• Cash and bank balances stood at RM957.3 million at 30 June 2026, up from RM920.3 million at year-end 2025.

• Operating profit for 1H26 was RM124.6 million, up 44.27% year-over-year.

• Basic earnings per share for 1H26 was 4.12 sen, compared to 2.63 sen in 1H25.

Outlook and guidance

• The glove industry is showing gradual recovery, but faces persistent global oversupply and raw material cost volatility.

• The group expects satisfactory performance for FY2026, focusing on operational efficiency, cost competitiveness, and business resilience.

• Technical Rubber Products division expected to remain resilient amid mixed market conditions.