Press Metal’s Q2 Profit Rises 42% as Aluminium Market Boosts Earnings

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Press Metal Aluminium Holdings Berhad reported a 42 per cent increase in core profit after tax and minority interest for the second quarter of FY2026, as higher realised aluminium prices and lower alumina costs supported earnings growth.

Core PATAMI, excluding a one-off associate-related gain, reached MYR 685.58 million (USD 170 million) for the three months ended June 30. Reported PATAMI rose 66 per cent year on year to a record MYR 801 million (USD 198.62 million), while revenue increased 12 per cent to MYR 4.69 billion (USD 1.16 billion). 

Higher metal prices support revenue

The Malaysian aluminium producer said revenue increased from MYR 4.19 billion (USD 1.04 billion) in the corresponding quarter a year earlier, largely due to higher realised metal prices.

Profit before tax climbed 78.9 per cent to MYR 1.16 billion (USD 287.64 million) from MYR 647.47 million (USD 160.55 million) in the previous corresponding quarter. In addition to firmer metal prices, the result benefited from lower alumina costs consumed during the period. 

The performance underscores the sensitivity of Press Metal’s earnings to aluminium pricing, input costs and the broader market conditions affecting the aluminium value chain.

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One-off gain lifts reported profit

Reported second-quarter PATAMI included a MYR 115.42 million (USD 28.62 million) gain arising from the dilution of the group’s investment in an associate company.

Removing this non-recurring gain provides a clearer view of underlying business performance. Core PATAMI of MYR 685.58 million (USD 170 million) still represented a 42 per cent increase from a year earlier, indicating that the quarter’s profit expansion was driven primarily by operations rather than the associate-related gain. 

The difference between reported and core earnings will be important for investors assessing whether the company can sustain its earnings growth beyond the quarter.

First-half earnings gain momentum

For the first half of FY2026, Press Metal recorded net profit of MYR 1.43 billion(USD 354.59 million), up nearly 51 per cent from MYR 945.3 million (USD 234.4 million) in the corresponding period last year.

First-half revenue increased 8.7 per cent to MYR 8.79 billion (USD 2.18 billion) from MYR 8.09 billion (USD 2.01 billion). The result extends a strong period for the company, although its second-half performance will remain dependent on realised aluminium prices, alumina availability and costs, energy inputs and demand from key industrial markets. 

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Dividend rises to 2.5 sen

Press Metal declared an interim dividend of 2.5 sen per share, payable on September 29, 2026. The payout is higher than the 2 sen per share declared for the comparable period a year earlier.

The dividend declaration follows what the company described as record quarterly earnings, giving shareholders a higher return while reflecting the group’s stronger profitability during the first half. 

Outlook 

Press Metal enters the second half with earnings momentum, supported by its improved first-half results and a stronger realised-metal-price environment.

However, the company operates in a cyclical industry. Future earnings will depend on whether aluminium prices remain supportive, alumina costs stay contained and demand holds across construction, transport, packaging, consumer goods and other aluminium-consuming sectors.

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