Sunway (SUNWAY) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue rose 8% year-over-year to RM2.56 billion, with growth from most segments except construction and others.

• Profit before tax surged to RM9.56 billion, mainly due to a one-off RM9.1 billion gain from the remeasurement of Sunway Healthcare Holdings (SHH) upon its listing and consolidation as a subsidiary; core PBT up 52% to RM462 million.

• PATMI increased to RM9.41 billion (reporting), or RM318 million (core), up from RM191 million YoY.

• Net gearing improved significantly to 0.30x from 0.48x at year-end 2025.

• Total equity and shareholders' funds increased significantly due to SHH consolidation and revaluation gains.

Financial highlights

• Revenue: RM2.56 billion (Q1 FY2026), up 8% YoY and 10% QoQ.

• PBT: RM9.56 billion (reporting), RM462 million (core), up from RM304 million YoY.

• PATMI: RM9.41 billion (reporting), RM318 million (core), up from RM191 million YoY.

• Basic EPS: 139.25 sen (Q1 FY2026) vs 2.67 sen (Q1 FY2025).

• Cash and cash equivalents increased to RM8.34 billion from RM4.61 billion YoY.

Outlook and guidance

• Stable earnings anticipated for FY2026, with vigilance against inflation, supply chain disruptions, and geopolitical uncertainties.

• Property launches and sales targets are on track, with RM2.1 billion launched and RM1.4 billion sold in Q1.

• Healthcare segment to focus on brownfield expansion, medical tourism, and capacity growth.

• Construction outlook positive, targeting RM6.0 billion in new order replenishments; RM3.59 billion secured in Q1.

• Management emphasizes prudent financial discipline and technology adoption.