MISC (MISC) Q4 2025 earnings summary

Executive summary

• FY2025 profit after tax increased 50% to $406 million, with strong cash generation and improved earnings driven by offshore and petroleum segments, and lower impairments.

• Operating cash flow rose 41% to $1.3 billion, supporting the highest dividend in over 15 years at MYR 0.38 per share.

• Strategic progress was made across Resilient Core, Profitable New Energy, and Decarbonization, with contract awards and asset deliveries including LNG carriers and FSU commissioning.

• Multiple awards were received for sustainability and safety, reflecting industry recognition.

• Net profit after tax rose to RM1,738.0 million from RM1,233.2 million in the prior year.

Financial highlights

• FY2025 revenue was $2.6 billion, a 10% decline YoY, mainly due to lower contributions from Heavy Engineering and Gas segments.

• FY2025 operating profit rose 40% to $649 million, with offshore as the main growth driver.

• Q4 2025 revenue was $677 million, down from $753 million YoY, mainly due to softer gas and heavy engineering segments.

• Q4 operating profit was $125 million, up 41% YoY, driven by offshore segment turnaround and insurance recoveries.

• Cash flow from operations increased to $1.3 billion, up from $940 million in 2024.

Outlook and guidance

• LNG shipping market expected to improve in 2026, with modern vessels favored and fleet projected to grow at 8% CAGR through 2030.

• Petroleum shipping market remains positive, supported by strong demand and tight vessel availability.

• Offshore segment to benefit from rising upstream capital spend and strong FPSO demand, especially in South America and Asia-Pacific.

• Marine & Heavy Engineering faces a volatile environment but aims to strengthen its orderbook and project execution.