KUALA LUMPUR: Sime Darby Bhd posted an earnings jump in the second quarter of its financial year ended Dec 31, 2025 (2QFY25), on the back of a record pre-tax profit in its motors division.
The group posted a net profit of RM431mil in 2QFY25, up from RM305mil in the year-ago quarter. Earnings per share rose to 6.3 sen from 4.5 sen previously.
Quarterly revenue climbed to RM18.97bil from RM17.73bil in the comparative quarter.
The group declared a first interim dividend of three sen per share with an entitlement date of March 18, 2026, and payment date of March 31, 2026.
According to a statement issued by the group, the motors division recorded a 77.1% year-on-year (y-o-y) surge in profit before interest and tax (PBIT) to RM209mil, mainly on the back of stronger profits across the division's Asian operations.
Sime Darby said the performance was driven by its China business and higher revenue from assembly activities in Malaysia, while Singapore also delivered increased profit from stronger vehicle sales during the quarter.
The group's industrial segment saw PBIT contract 11% y-o-y to RM300mil due to lower contributions from the division's Australasia and Malaysia operations.
Meanwhile, the UMW division's PBIT declined marginally to RM269mil due to lower parts sales and higher operating expenses.
The 2Q results brought the group's six-month earnings to RM786mil, down from RM1.11bil in the year-ago period, while revenue was RM37.01bil against RM35.99bil in the year-ago period.
Datuk Jeffri Salim Davidson, Sime Darby’s group CEO, said the solid results were delivered against a challenging backdrop.
“We have remained focused on strengthening our balance sheet, generating healthy cash flow and reducing debt. As a result, there has been significant reduction in our finance costs of close to RM100mil during the first six months of this financial year.
"We will continue to prioritise financial discipline while redoubling our efforts to maintain market share against stiff competition,” he added.