PERFORMANCE FY2026: A Year of Transition The global environment in FY2026 was shaped by moderating inflation, a slower easing cycle than markets had anticipated, and renewed conflict in West Asia. The latter reached Destini directly, through disruption around the Strait of Hormuz and its impact on marine operations in the region. Domestically, the rollout of the 13th Malaysia Plan (2026–2030) and the first Budget under it reaffirmed the Government's commitment to public transport and rail connectivity. Against this backdrop, Mobility remained the Group’s largest contributor. Rail revenue grew on the delivery of 16 train units under our Ministry of Transport contracts. Aviation & Defence recorded lower activity as two longrunning Ministry of Defence contracts reached their current allocation ceilings. Extensions are now being finalised, with the underlying backlog firmly intact and the segment positioned to strengthen its contribution. Energy’s longer-term prospects are supported by the fiveyear PETRONAS Carigali TRS contract secured in March 2026. Subsequent to the financial year end, DOS accepted a TRS contract from Searah (Malaysia) Sdn. Bhd. for its West Region operations. Marine’s manufacturing activities provided a partial offset to weaker servicing activities, which were affected by geopolitical developments. The Group has initiated a strategic review to determine the optimal path forward for the business and best use of the Group’s resources. Sharpening the Portfolio, Strengthening the Core The Group's Go-Forward Plan 2027 is organised around five thrusts: 1. M obility First - Full Level 1 to Level 4 rail MRO capability completed after the year end, and international credentials secured to support regional expansion. 2. Segment Repositioning- Aviation & Defence will focus on operational efficiency and higher-value opportunities, while Energy will increasingly pursue partnership structures that enable the Group to scale revenue without straining the balance sheet. 3. F inancial Discipline - Maintaining low net gearing, containing finance costs, and strengthening working capital management and continuing the recovery of long-standing receivables. 4. T echnical Collaboration - A two-year collaboration with Siemens Mobility on digital railway MRO, signed in September 2026 after the financial year end, provides a potential future growth catalyst. 5. C orporate Integration - Greater integration of shared services, tighter internal controls and stronger Grouplevel cost discipline will improve efficiency. Safety, Resources and Accountability Destini recorded zero work-related fatalities and a losttime incident rate of zero across 638,182 working hours, for a second consecutive year. Our workforce grew to 515 employees (FY2025: 382), with women representing 20.39% (FY2025: 17.28%). The Group maintained a strong governance record, with zero confirmed corruption incidents and no substantiated human rights complaints. We engaged shareholders at our 21st Annual General Meeting in December 2025 and at three investor briefings, including a June session at our Railtec facility in Seremban. Board and Leadership The Board changed in August 2026. Effective 14 August 2026, I was appointed Independent Non-Executive Chairman, and Dato' Sri Dr. Shahril Mokhtar was redesignated from Non-Executive Director to Group Managing Director, returning him to the executive role in which he leads the management team. The appointments of Datuk Mua’amar Ghadafi Jamal Bin Datuk Wira Jamaludin and Ms. Chua Pooi Ngee as Independent Non-Executive Directors further strengthened the Board’s composition. The Board records its appreciation to the Directors who stepped down during the period for their service and contributions to the Group. PERFORMANCE DESTINI BERHAD 31 ANNUAL REPORT 2026
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