Tenaga Nasional (5347) Q3 2025 earnings summary

Executive summary

• Group revenue for the first nine months of FY2025 rose 18.3% year-over-year to RM50,123.4 million, driven by higher electricity demand across all sectors, increased energy exports, and strong performance from all business pillars.

• Core profit after tax (PAT), adjusted for FOREX and MFRS, reached MYR 3.259 billion, up 13.7% year-over-year, while reported PAT was RM3,117.7 million, down 8.7% due to lower one-off gains and higher depreciation.

• Significant progress in energy transition initiatives, including grid investments, EV infrastructure, and renewable energy projects domestically and internationally.

• Continued focus on supporting Malaysia’s energy transition and positioning as a regional clean energy hub, with robust demand growth, especially from the commercial sector and data centers.

• Quarterly revenue in 3QFY2025 increased 2.5% sequentially, supported by higher electricity sales.

Financial highlights

• EBITDA for 9MFY2025 was RM15,088.2 million, up 4.8% year-over-year, with margin strengthening to 31.2%.

• Revenue increased by 18.3% year-over-year for the first nine months of 2025, mainly due to higher electricity sales and cost-reflective tariffs.

• Operating expenses (excluding depreciation) fell 6.9% year-over-year, mainly due to lower fuel and power purchase costs from reduced coal prices.

• Lower net finance costs and favorable FOREX movements provided additional uplift, though net finance cost increased marginally by 0.9% year-over-year.

• Stable collection trends and trade receivables, with average collection period below 70 days and improved to 27 days as of September 2025.

Outlook and guidance

• Electricity demand expected to grow in line with IBR projection of 2.8% and Malaysia's GDP growth forecast of 4.0%–4.8% for FY2025, led by the commercial sector.

• Planned CapEx of MYR 15 billion for 2025, with MYR 12 billion for regulated business and MYR 3 billion for non-regulated.

• RE portfolio to be strengthened by an additional 212 MWp by year-end, including new UK solar assets and CGPP projects.

• Ongoing transition to a new electricity tariff schedule in July 2025 is expected to impact regulatory adjustments.

• Commitment to sustainable dividends and long-term growth aligned with Malaysia’s energy transition agenda.