MANAGEMENT DISCUSSION AND ANALYSIS (MD&A) Overview of Business and Financial Performance The Group’s results moderated in FY2026 as lower activity in Aviation & Defence, Energy and disruption to Marine’s servicing operations, outweighed continued growth in Mobility. In response, the Group has sharpened its portfolio around Mobility as its core growth engine, while repositioning Aviation & Defence and Energy and initiating a strategic review of Marine. Group revenue was RM308.56 million (FY2025: RM341.80 million). Mobility contributed approximately 68% of Group revenue, supported by the delivery of 16 train units under Railtec’s Ministry of Transport contracts. This was moderated by lower revenue in Aviation & Defence, where two Ministry of Defence contracts reached their approved ceilings. Energy experienced lower rig-related activity and Marine recorded fewer boat deliveries as delays to the shipyard production schedule deferred the completion of certain boats. Gross profit margin remained healthy at 32% despite the lower revenue base. Profit before tax was RM24.76 million and profit after tax was RM13.99 million. Profit attributable to shareholders stood at RM4.37 million. The Group continued to manage its finances with discipline. Bank borrowings were reduced to RM63.51 million (FY2025: RM70.40 million), trade receivables declined to RM131.18 million (FY2025: RM144.16 million) and net gearing stood at 0.32 times. The Company also paid an interim single-tier dividend of 0.50 sen per share, amounting to RM2.74 million, during the year. Taken together, FY2026 lays the groundwork for a repositioning of the Group. Destini enters FY2027 with a secured order book of RM1.01 billion, a newly completed full-lifecycle rail maintenance platform, and a clear strategic direction. Guided by its “Reinforce, Reposition & Ready to Rise” agenda, the Group is well placed to build on a strengthened core and deliver sustainable, long-term value for shareholders. PERFORMANCE DESTINI BERHAD 33 ANNUAL REPORT 2026
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