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Firm aluminium prices, improved cost control, and easing input prices defined the operating performance of Press Metal Aluminium Holdings Berhad in 2025. The year began on a strong footing, with H1 revenue at RM 8.08 billion (USD 2.08 billion) versus RM 7.56 billion (USD 1.94 billion) a year ago. Encouraged by this momentum, financial institutes like Hong Leong Investment Bank Bhd (HLIB) and the company itself heightened expectations for the second half of the year. Much before the year ended in December, Hong Leong Investment Bank Bhd (HLIB) reaffirmed its “BUY” call, raising its target price to RM 7.64 (USD 1.96).

Earning momentum continues as much anticipated

Just the way it was anticipated, Press Metal delivered yet again strong quarters (Q3 and Q4) and closed the year 2025 with higher earnings than the previous year. The Q4 profit not only touched but exceeded the mark of consensus estimates between RM 600 million (USD 148.5 million) and RM 650 million (USD 160.9 million), reaching RM 696 million (USD 178 million) in reality. That reflects a staggering surge of 38 per cent over the year and the company’s highest quarterly profit till date.

Press Metal’s full-year profit stood at RM 2.51 billion (USD 645 million) versus RM 2.12 billion (USD 545 million) a year ago. Factors like increased LME prices that grew from USD 2,600 per tonne to USD 2,968 per tonne and lower input costs like carbon anode prices that dropped 5 per cent Q-o-Q at the end of September and alumina prices that plunged from USD 358 on September 1 to USD 310.18 on December 31, contributed to this celebratory financial output.

The growth in Press Metal’s profit followed elevated revenue, which rose 13.4 per cent Y-o-Y from RM 3.56 billion (USD 0.9 billion) to RM 4.04 billion (USD 1.04 billion). Consequently, full-year’s revenue reached 8.7 per cent higher Y-o-Y from RM 14.9 billion (USD 3.83 billion) to RM 16.2 billion (USD 4.16 billion).

Below the line pressure weighs on net income

Operating expenses grew through 2025 from RM 12.81 billion (USD 3.29 billion) to RM 13.62 billion (USD 3.5 billion), reflecting a 6.4 per cent rise Y-o-Y, while profit from operations jumped by 35.3 per cent from RM 1.9 billion (USD 488 million) to RM 2.57 billion (USD 660 million. This was likely supported by favourable aluminium price realisations and disciplined cost management, with hedging playing a stabilising role. But the concern is that despite the positive operating profit and revenue, Press Metal’s comprehensive net income decreased Y-o-Y by 27.6 per cent from RM 2.6 billion (USD 668 million) to RM 1.86 billion (USD 478 million), likely to be attributed to factors below the operating line, including mark-to-market losses on hedging and derivative positions, as well as adverse foreign-exchange translation effects amid a sharply stronger Malaysian ringgit.

The ringgit emerged as one of Asia's top-performing currencies, appreciating over 10 per cent against the US dollar for the full year 2025. In December alone, the ringgit appreciated by 1.9 per cent M-o-M, closing the month at RM 4.06, which made Malaysian ringgit as a top performing currency in 2025.

Against this backdrop, the company has moved to further strengthen its risk-management framework. In January 2026, Press Metal announced that it had hedged around 40 per cent of its alumina requirements for the year, a step aimed at insulating margins from raw-material price volatility given alumina’s significant share in overall production costs.

Asset base and strong business verticals

At the end of 2025, Press Metal had non-current assets of RM 11.55 billion (USD 2.97 billion) as against RM 10.16 billion (USD 2.61 billion) in 2024 and current assets of RM 19.17 billion (USD 4.92 billion) versus RM 16.63 billion (USD 4.27 billion) a year ago.  

Press Metal’s business segments are involved in aluminium smelting, extrusion, and refinery across Malaysia, Asia region, Europe region, and American region. Among the business segments, smelting yielded the highest revenue from external customers, amounting to RM 13.4 billion (USD 3.4 billion), followed by extrusion RM 3.1 billion (USD 796 million), and refinery RM 384,328 million (USD 98.8 million).

Among geographical locations, Asia (ex-Malaysia) contributed RM 9.14 billion (USD 2.35 billion) to the annual revenue of 2025, followed by Malaysia RM 5.45 billion (USD 1.4 billion), Europe region RM 5.22 billion (USD 1.34 billion), and American region RM 654.3 million (USD 168 million).

2026 outlook: demand drivers seem supportive

For 2026, Press Metal expects trade policies to reshape regional business dynamic, influence metal flows, and support regional premiums. The company further anticipates solar photovoltaic installations, electric vehicle adoption, energy infrastructure, especially power grid expansion and battery energy storage systems, and AI-driven data centres to offset potential demand softness on other applications.

Barring unprecedented situation, the Group expects to deliver yet another strong fiscal output in 2026, supported by strengthening aluminium prices owing to favourable copper-to-aluminium ratio and high usage intensity.