YTL Power’s FY2025 Report: Navigating Headwinds with Strategic Growth and a Dividend Treat
YTL Power International Berhad, a cornerstone of Malaysia’s utility and infrastructure landscape, has just released its full-year financial results for the period ending June 30, 2025. The report paints a picture of a company navigating a complex market environment. While headline profits saw a dip from last year’s record highs, a deeper dive reveals robust performance in key divisions and exciting strategic investments shaping its future. To top it off, the company has rewarded shareholders with another dividend declaration, signalling confidence ahead.
Let’s break down the numbers and what they mean for this diversified giant.
Core Data Highlights
Full-Year Performance: A Normalisation from Record Highs
For the full financial year 2025, YTL Power posted a commendable performance, although it didn’t quite reach the exceptional heights of the previous year. The normalisation was largely expected, primarily influenced by its power generation segment in Singapore.
The Group achieved a net profit attributable to owners of RM2.40 billion for the financial year ended 30 June 2025.
Full Year Ended 30 June 2025
- Revenue: RM21.81 billion
- Profit Before Tax: RM3.15 billion
- Net Profit (Attributable to Owners): RM2.40 billion
- Basic Earnings Per Share (EPS): 28.87 sen
Full Year Ended 30 June 2024
- Revenue: RM22.28 billion
- Profit Before Tax: RM4.03 billion
- Net Profit (Attributable to Owners): RM3.41 billion
- Basic Earnings Per Share (EPS): 41.98 sen
The year-on-year decrease in revenue and profit was mainly driven by lower electricity pool and retail prices in the Singaporean market, coupled with a stronger Ringgit against the Singapore Dollar.
A Closer Look at the Final Quarter (Q4 2025)
The final quarter’s results reflect the broader full-year trend, showing a dip when compared to the corresponding quarter last year.
Q4 FY2025 (Ended 30 June 2025)
- Revenue: RM5.55 billion
- Profit Before Tax: RM914.1 million
- Net Profit (Attributable to Owners): RM670.0 million
- Basic Earnings Per Share (EPS): 8.05 sen
Q4 FY2024 (Ended 30 June 2024)
- Revenue: RM6.31 billion
- Profit Before Tax: RM1.16 billion
- Net Profit (Attributable to Owners): RM1.01 billion
- Basic Earnings Per Share (EPS): 12.45 sen
Segment Performance: A Mixed Bag of Results
The strength of YTL Power’s diversified portfolio is evident when we look at the individual business segments. While the power generation arm faced headwinds, the Water & Sewerage division delivered an outstanding performance.
| Business Segment | Q4 FY2025 | Q4 FY2024 | Change |
|---|---|---|---|
| Power Generation | 644.9 | 785.2 | -17.9% |
| Water & Sewerage | 287.6 | 54.5 | +427.7% |
| Telecommunications | (130.4) | (65.1) | Loss Widened |
| Investment Holding | 112.1 | 382.8 | -70.7% |
- Power Generation: The decline was primarily due to lower electricity prices in Singapore.
- Water & Sewerage: This segment was the star performer. The impressive surge in profit was driven by a price increase allowed by the UK regulator for its subsidiary, Wessex Water, and the consolidation of contributions from Ranhill Utilities Berhad.
- Telecommunications: The YES brand recorded a wider loss, mainly attributed to lower project revenue during the quarter.
- Investment Holding: The significant drop in profit here is not alarming. The previous year’s corresponding quarter included a substantial one-off fair value gain from the acquisition of Ranhill Utilities. This quarter’s performance was also impacted by a non-cash unrealised foreign exchange loss.
Risk and Prospect Analysis
Charting the Course: Future Growth and Potential Hurdles
YTL Power is not standing still. The company is actively investing in several high-growth areas that signal a clear strategic direction for the future, while also managing risks in its established businesses.
Opportunities on the Horizon:
- Green Energy Transition: A major focus is the development of the YTL Green Data Center Park in Johor. This ambitious project will be the first of its kind in Malaysia to be co-powered by an on-site 500MW large-scale solar power facility, tapping into the immense demand for sustainable data infrastructure.
- Future-Proofing Power: In Singapore, construction has begun on a 600MW hydrogen-ready power plant, positioning the company at the forefront of the global shift towards cleaner energy sources.
- Entering the Digital Finance Arena: The Group has been awarded a digital banking license and launched Ryt Bank. This venture, in partnership with Sea Limited, aims to serve the underbanked and MSME segments, leveraging technology and AI to offer inclusive financial services.
- 5G Expansion: The telecommunications arm, YES, continues to expand its 5G services across the country, aiming to capture a larger subscriber base with its affordable and innovative data plans.
Potential Risks to Monitor:
- Regulatory Uncertainty: Wessex Water’s business plan and pricing for 2025-2030 have been referred to the UK’s Competition and Markets Authority (CMA) for re-determination. The outcome of this review, expected within 12 months, introduces a degree of uncertainty for this key profit contributor.
- Market Volatility: The Power Generation segment’s results underscore its sensitivity to fluctuating electricity market prices and foreign exchange rates.
Summary and Investment Recommendations
In summary, YTL Power’s FY2025 results reflect a period of transition and strategic repositioning. While profits have normalised from the exceptional levels of FY2024, the underlying operational strength, particularly in the Water & Sewerage division, remains impressive. The declaration of a 4 sen per share interim dividend underscores the Board’s confidence in the Group’s financial health and future prospects.
Looking ahead, YTL Power is laying a solid foundation for its next chapter of growth. The aggressive push into green data centers, renewable energy, and digital banking are forward-looking moves that align with global megatrends. These new ventures are poised to become significant earnings drivers in the future, balancing the performance of its traditional utility businesses.
- Regulatory Decisions: The outcome of the CMA review for Wessex Water in the UK will be a key factor to watch.
- Execution of New Projects: Successful and timely execution of the green data center and hydrogen-ready power plant will be crucial for long-term growth.
- Market Conditions: Continued volatility in energy prices and currency markets remains an external risk for the power generation segment.
Final Thoughts
From my perspective, while the headline numbers show a year-on-year decline, the underlying story is one of strategic repositioning. YTL Power is prudently investing its capital into high-growth sectors that will define its future. The resilience of its core utility assets provides a stable platform from which to launch these exciting new ventures.
What are your thoughts on YTL Power’s pivot towards green energy and digital banking? Do you believe these new ventures will be the key growth drivers in the coming years?
Share your views in the comments below!
