Widad Group Berhad Q1 2026 Financial Results: Earnings, Cash Flow, Litigation & Outlook

Widad Group Berhad Q1 2026 Financial Report: Key Insights for Investors

Summary of Financial Performance

Revenue: Widad Group Berhad (“Widad” or “the Group”) reported revenue of RM27.09 million for Q1 2026, a significant decrease of 56.35% compared to RM62.06 million in Q1 2025. The drop is primarily attributed to lower construction activities and several projects approaching their tail-end phases.
Gross Profit: The Group posted a gross profit of RM3.12 million, down 52.15% from RM6.51 million in the corresponding quarter last year. However, the gross profit margin improved to 11.50% from 10.49%, reflecting better cost management.
Profit Before Tax (PBT): PBT for Q1 2026 stood at RM1.55 million, compared to RM2.27 million in Q1 2025. The PBT margin improved to 5.72% (Q1 2025: 3.60%) due to reductions in administrative expenses (down by RM2.18 million) and higher finance income (up by RM1.09 million).
Profit After Tax: The Group recorded a profit after tax of RM1.03 million for Q1 2026, compared to RM1.22 million in Q1 2025.
Earnings Per Share (EPS): Basic EPS was 0.03 sen for Q1 2026, down from 0.04 sen in Q1 2025.

Balance Sheet and Cash Flow Position

Total Assets: RM731.88 million as at 31 March 2026.
Equity: Total equity attributable to owners of the company is RM209.16 million, with net tangible assets per share remaining stable at RM0.06.
Borrowings: Total borrowings stand at RM311.03 million, representing 42.5% of total assets. The Group made a significant principal payment of RM25 million for Sukuk Wakalah on 30 March 2026.
Cash Flows: Net cash flows from operating activities were RM39.68 million, while net cash used in investing activities was RM1.34 million. Net cash used in financing activities was RM39.82 million, mainly due to repayment of borrowings and lease liabilities.

Operational and Strategic Highlights

Order Book: As of the date of the report, Widad’s outstanding order book stands at RM1.24 billion, providing a strong pipeline for future revenue.
Segment Performance:
- Construction: Generated RM14.50 million in revenue.
- Facility Management: Contributed RM12.59 million in revenue.
Economic Outlook: The Group remains cautiously optimistic for FY2026, supported by a strong order book, ongoing tender participation, customer diversification, and targeted investments for recurring income assets.

Legal and Litigation Risks

Shareholders Should Take Note of the Following Material Litigations:

Hikmat Duta Sdn. Bhd. vs Widad Builders Sdn Bhd:
- Widad Builders is required to pay an adjudicated sum of RM2.79 million plus interest and legal costs. The court dismissed Widad’s application to set aside the adjudication. This may affect Widad’s cash flow and liabilities.
China Design Group & Others vs Widad Group Berhad:
- Plaintiffs are claiming a refund of RM3 million relating to a failed highway tender. The court has dismissed the plaintiff’s summary application. Mediation and trial are scheduled for June and September 2026, respectively. A negative outcome may impact cash reserves and reputation.
Dagang Jati Sdn Bhd vs Widad Builders Sdn Bhd:
- Court ordered Widad Builders to pay RM1.29 million plus interest and costs for outstanding subcontractor payments.
ST Tunnel Sdn Bhd (formerly Icop Construction) vs Widad Builders Sdn Bhd:
- Winding-up petition relating to unpaid sums for pipe jacking works. Widad filed an objection; hearing set for 30 June 2026. A winding-up order, if granted, would be highly detrimental and price sensitive.
Widad Builders Sdn Bhd vs Dataprep Holdings Berhad:
- Widad is claiming RM1.47 million in rental arrears. A summary judgement hearing is scheduled for 18 June 2026. Recovery of this sum would be positive for cash flow.
Menta Construction Sdn Bhd vs Widad Builders Sdn Bhd:
- Widad was ordered to pay RM3.46 million plus interest and costs for earthworks. Garnishee proceedings have begun for up to RM4.28 million.
Sany Construction (M) Sdn Bhd vs Widad Builders Sdn Bhd:
- Winding-up petition for an adjudicated sum of RM6.25 million. Widad has paid RM3 million, but negotiations for the balance failed. The winding-up petition is progressing and is a significant risk to shareholders.

Other Notable Items

No dividends were declared or paid for Q1 2026.
No material events, capital commitments, or changes in group composition subsequent to the reporting period.
No new corporate proposals pending completion.

Potential Price Sensitive Issues

Significant Decrease in Revenue: The steep drop in revenue may indicate challenging market conditions and could weigh on share price unless offset by new contract wins or recovery in construction activities.
Litigation Risks: Multiple ongoing legal cases, including winding-up petitions and substantial adjudicated claims (totaling more than RM10 million), pose a material risk to Widad’s cash flow, operations, and possibly its going concern status if not resolved favorably. These are highly price-sensitive items.
Order Book Strength: The large outstanding order book (RM1.24 billion) provides some visibility on future revenue and could support investor confidence if execution and collection risks are well-managed.
Improving Margins: Despite lower revenue, improved gross and PBT margins signal better cost control and operational efficiencies, which could be viewed positively if sustained.

Outlook

The Group remains cautiously optimistic for FY2026, underpinned by a strong order book and ongoing efforts to secure more projects. However, the outcome of several ongoing litigations and ability to resolve or manage the winding-up petitions are critical for its financial stability and share price trajectory. Investors should monitor these developments closely.

Disclaimer: This news article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research or consult with their financial advisor before making any investment decisions. The article is based on publicly available financial reports and may not capture all relevant risks or opportunities.

Laporan Bahasa Malaysia

Laporan Kewangan Suku Pertama 2026 Widad Group Berhad: Perkara Penting untuk Pelabur

Prestasi Kewangan Utama

Hasil: Widad merekodkan hasil sebanyak RM27.09 juta untuk S1 2026, iaitu penurunan ketara sebanyak 56.35% berbanding RM62.06 juta S1 2025. Penurunan ini berpunca daripada aktiviti pembinaan yang lebih rendah dan projek-projek yang telah memasuki fasa akhir.
Untung Kasar: Untung kasar RM3.12 juta (turun 52.15% dari RM6.51 juta), tetapi margin untung kasar meningkat kepada 11.50% (S1 2025: 10.49%) kerana pengurusan kos yang lebih baik.
Untung Sebelum Cukai (PBT): PBT S1 2026 ialah RM1.55 juta dengan margin 5.72% (S1 2025: RM2.27 juta, margin 3.60%). Peningkatan margin didorong oleh penurunan perbelanjaan pentadbiran dan peningkatan pendapatan kewangan.
Untung Selepas Cukai: Untung selepas cukai ialah RM1.03 juta (S1 2025: RM1.22 juta).
Keuntungan Sesaham (EPS): EPS asas ialah 0.03 sen (S1 2025: 0.04 sen).

Kedudukan Kewangan & Aliran Tunai

Aset Keseluruhan: RM731.88 juta pada 31 Mac 2026.
Ekuiti: Ekuiti pemilik syarikat RM209.16 juta, nilai aset ketara sesaham kekal pada RM0.06.
Pinjaman: Jumlah pinjaman RM311.03 juta (42.5% daripada aset keseluruhan). Bayaran prinsipal Sukuk Wakalah sebanyak RM25 juta telah dibuat pada 30 Mac 2026.
Aliran Tunai: Aliran tunai bersih aktiviti operasi RM39.68 juta, aktiviti pelaburan negatif RM1.34 juta, dan aktiviti pembiayaan negatif RM39.82 juta.

Perkembangan Operasi & Strategik

Buku Pesanan: RM1.24 bilion, memberikan prospek hasil yang kukuh pada masa hadapan.
Prestasi Segmen:
- Pembinaan: RM14.50 juta
- Pengurusan Fasiliti: RM12.59 juta
Pandangan Ekonomi: Syarikat kekal optimistik berhati-hati untuk tahun kewangan 2026 dengan usaha berterusan menambah tender dan pelaburan strategik.

Risiko Litigasi Penting

Beberapa kes mahkamah sedang berjalan melibatkan tuntutan dan petisyen penggulungan yang besar (jumlah melebihi RM10 juta). Jika keputusan tidak memihak kepada Widad, ia boleh memberi impak negatif terhadap kedudukan kewangan dan harga saham syarikat.
Dua petisyen penggulungan yang sedang berjalan adalah risiko sensitif harga dan perlu dipantau rapi oleh pelabur.

Perkara Lain yang Perlu Diperhatikan

Tiada dividen diumumkan atau dibayar untuk suku ini.
Tiada perubahan ketara dalam komposisi kumpulan, komitmen modal, atau cadangan korporat.

Isu Berpotensi Sensitif Harga

Penurunan hasil secara mendadak boleh menjejaskan keyakinan pelabur kecuali syarikat berjaya mendapatkan kontrak baru atau pemulihan dalam aktiviti pembinaan.
Risiko litigasi yang tinggi, terutama petisyen penggulungan, boleh menjejaskan kedudukan kewangan dan kelangsungan syarikat sekiranya tidak diselesaikan dengan baik.
Kekuatan buku pesanan bernilai RM1.24 bilion memberi keyakinan terhadap prospek hasil masa hadapan.
Peningkatan margin untung walaupun hasil menurun menunjukkan pengurusan operasi yang lebih baik.

Pandangan Keseluruhan

Prestasi kewangan Widad untuk S1 2026 bercampur-campur, namun kekuatan buku pesanan dan pengurusan kos yang baik adalah positif. Namun, risiko litigasi yang sedang berjalan dan petisyen penggulungan adalah faktor utama yang sangat sensitif harga dan perlu diberi perhatian serius oleh pelabur.

Penafian: Artikel ini hanya untuk tujuan maklumat dan bukan merupakan nasihat pelaburan. Pelabur dinasihatkan untuk membuat kajian sendiri atau berunding dengan penasihat kewangan sebelum membuat sebarang keputusan pelaburan. Artikel ini berdasarkan laporan kewangan yang tersedia secara umum dan mungkin tidak merangkumi semua risiko atau peluang yang berkaitan.