KUALA LUMPUR, 27th February 2026 – Northern Solar Holdings Berhad (“Northern Solar” or “the Group” │ Bursa: NORTHERN, 0340), a leading solar engineering, procurement, construction, and commissioning (“EPCC”) provider in Malaysia, today reported its strongest quarterly performance since its listing on the ACE Market. The results were driven by accelerating project execution across the commercial and industrial segments.
For the third quarter ended 31 December 2025 (“Q3 FY2026”), the Group recorded revenue of RM36.1 million. This represents a 50.1% increase year-on-year and a 28.2% jump from the immediate preceding quarter. Profit After Tax (PAT) rose 19.5% to RM4.1 million.
On a cumulative nine-month basis (9M FY2026), Northern Solar achieved revenue of RM92.3 million, up 43.7% year-on-year. PAT grew 12.1% to RM12.2 million.
This revenue growth stems directly from higher EPCC delivery volumes across commercial, industrial, and residential clients. While the gross profit margin for the nine-month period compressed to 32.9% (from 37.6% previously), this variation strictly reflects the cost dynamics associated with executing larger-scale installations. This is consistent with the Group's strategic shift toward higher-value projects. Importantly, absolute gross profit still grew 25.9% year-on-year to RM30.4 million.
“Three consecutive profitable quarters since our IPO, and our strongest revenue quarter on record. That is the answer to the question of whether we can execute at scale. The revenue trajectory — RM28 million, RM28 million and RM36 million — tells you the larger projects are now entering their billing phases. Margins are tighter on bigger installations, and we have been clear about that trade-off. What matters is that we are building a business that can win larger mandates, deliver them, and grow absolute profit while doing it. The Solar ATAP programme kicking in from January gives our C&I rooftop business a new layer of demand that did not exist before, and we are well-positioned to capture it,” commented Mr. SK Lew, Managing Director of Northern Solar.
EPCC Solar PV remained the Group's primary revenue driver at RM90.3 million — 97.8% of total revenue — growing 43.1% year-on-year. Revenue growth was driven by higher project delivery volumes across the commercial, industrial, and residential segments, with larger-scale installations entering their active billing phase in Q3.
The Group's recurring revenue streams, while small in absolute terms, are growing. Sale of electricity from owned solar assets grew 78.2% to RM1.8 million, and operations and maintenance services more than doubled to RM0.2 million. Together these contribute 2.2% of total revenue. The Group has indicated it is exploring opportunities to expand these recurring streams, which would provide greater earnings stability over time.
Northern Solar exits the period with a highly robust balance sheet. As at 31 December 2025, cash and bank balances stood at RM42.6 million. The Group utilised its liquidity to reduce total borrowings by 23.1% to just RM7.9 million, resulting in a net cash position of RM34.6 million and a low gross gearing ratio of 0.10x.
Looking ahead, Northern Solar operates within a sector supported by strong structural tailwinds. The National Energy Transition Roadmap (NETR) and the Large-Scale Solar (LSS) programmes continue to drive utility-scale opportunities. Furthermore, the introduction of the Solar ATAP programme (effective 1 January 2026) acts as a new of total revenue. The Group has indicated it is exploring opportunities to expand these recurring streams, which would provide greater earnings stability over time.
