Tenaga Nasional (5347) Q4 2025 earnings summary

Executive summary

• FY2025 delivered resilient financial performance with core profit (adjusted for forex and MFRS 16) of RM4,769.0 million, up from RM4,157.4 million in FY2024, reflecting strong execution, efficiency initiatives, and sustainable returns.

• Revenue grew 19.4% year-over-year to RM67,723.1 million, driven by higher electricity sales, cost-reflective tariffs, and RP4 implementation.

• Dividend payout ratio reached 65.6%, totaling RM0.53 per share, with a final dividend of 28.0 sen and interim of 25.0 sen.

• Recognized for governance and sustainability, winning national and international awards and improving ESG ratings.

• Operational efficiency improved, with EAF at 87.8% and demand growth led by the commercial sector.

Financial highlights

• EBITDA for FY2025 was RM20,517.7 million (margin 31.6%), up from RM19,952.4 million (margin 30.3%) in FY2024.

• Core profit rose 14.7% year-on-year to RM4,769.0 million.

• Operating expenses declined 4.2% year-over-year, mainly due to lower fuel prices.

• Trade receivables reduced from RM4.4 billion to RM3.9 billion, with collection period improved to 23 days.

• Earnings per share rose to 81.86 sen from 68.58 sen year-over-year.

Outlook and guidance

• Medium- to long-term focus on achieving Net Zero emissions and coal-free operations by 2050, targeting 70% RE capacity.

• FY2026 CapEx guidance: RM13 billion regulated, RM5 billion non-regulated, aligned with national energy transition priorities.

• Projected electricity demand growth in line with GDP (4.0%–4.5%).

• Stable earnings expected for 2026, supported by Incentive-Based Regulation and prudent measures.

• Continued disciplined execution across clean generation, grid modernization, and customer solutions.