Kuala lumpur: WCE Holdings Bhd reported a reduced net loss of RM25.33 million for the first quarter ended June 30, 2025 (1Q FY2026), a slight improvement from the net loss of RM25.86 million recorded in the same period the previous year.
According to BERNAMA News Agency, the company disclosed in a Bursa Malaysia filing that its revenue saw a significant increase to RM393.85 million in 1Q FY2026 from RM75.57 million in the prior period. This rise was attributed to heightened construction activities and higher toll collection following the recent opening of additional sections of the expressway.
The company stated that revenue from construction activities in the first quarter of FY2026 surged by 710 percent compared to the same quarter in the previous fiscal year. This increase was mainly due to intensified construction work on rest and service areas as well as remaining sections of the West Coast Expressway. Additionally, toll collection revenue improved by 61 percent, driven by an increase in traffic volume after the new sections became operational.
WCE Holdings Bhd's subsidiary, WCE Maju Sdn Bhd, which is responsible for the group's construction operations, experienced a 230 percent rise in construction revenue in 1Q FY2026 compared to 1Q FY2025. This growth was primarily due to a higher level of construction activity during the period.
Regarding future prospects, the company highlighted that as of March 31, 2025, eight out of eleven sections of the expressway are operational, covering 180 kilometers across Selangor and Perak, with the entire Perak alignment of 120 kilometers now fully completed. Construction is ongoing for the final three sections, which include Section 3 (KESAS - Federal Highway Route 2), Section 4 (Federal Highway Route 2 - New North South Klang Straits Bypass), and Section 7 (Assam Jawa - Tanjong Karang).
The company anticipates incurring losses in the initial years of toll operations due to the end of capitalisation of interest expenses for completed sections. However, an increase in sectional toll revenue is expected to enhance the group's financial performance in terms of cash flows and operating results moving forward.