YTLP Earnings Preview | Data Center Expansion Abroad: What to Know Before YTLP's Earnings

According to consensus estimates compiled by Bloomberg and moomoo, YTLPOWR’s full-year forecasts for FY2026 are as follows:

– Revenue is projected to reach RM23.2 billion, representing year-on-year growth of 12.06%.

– Adjusted net income is expected to come in at RM2.8 billion, up 17.06% year-on-year.

– Earnings per share (EPS) are estimated at RM0.30.

In the previous quarter, revenue fell 11.9% year-on-year to RM5.55 billion, while profit declined 34% to RM670 million. This was mainly attributed to weaker retail electricity tariffs and the appreciation of the Malaysian ringgit against the Singapore dollar. The continued strength of the ringgit this quarter is expected to remain a drag on the company’s Singapore-based earnings. Since the last earnings release, YTLPOWR’s share price has experienced a period of gradual decline.

As a leading Malaysian utility operator, YTLPOWR derives the bulk of its revenue—over 85% combined—from its Power Generation and Water & Sewerage segments. The disaggregated revenue breakdown from the last quarter clearly highlights the challenges facing the company: while the Water & Sewerage segment has posted robust growth, this has not been sufficient to fully offset the pronounced decline in the core Power Generation business in the near term. Meanwhile, although the data center segment holds promising long-term potential, it is not yet positioned to make a material contribution to revenue or earnings in the short run. This quarter, key areas to watch will be whether Power Generation shows signs of recovery and if Water & Sewerage can sustain its growth trajectory.

Investors are particularly focused on YTLPOWR’s strategic push into data centers, which represents a major potential growth driver. The company recently announced the completion of its YTL Green Data Centre Park in Kulai, Johor. The 20MW facility is fully equipped with NVIDIA’s advanced Grace Blackwell GB200 GPUs, reinforcing YTLP’s strategic move into high-performance computing and AI infrastructure. This AI data centre forms part of YTLP’s broader 500MW Green Data Centre Park, with 300MW already under construction and expected to be fully operational within two years.

According to management, the newly launched 20MW AI data centre developed with NVIDIA is partially contracted to a U.S. offtaker, while the remainder will support YTLP’s own large-language model and AI solutions. With the data centre business already EBITDA-positive, YTLP expects more meaningful financial contributions starting from FY2027.

YTL Group is exploring opportunities to enter South Africa's market as an independent power producer and in data centre and AI sectors. Executive Director Yeoh Keong Hann stated the conglomerate aims to establish a presence there within the next two years, pending further research. He emphasized that stable energy and water supplies are fundamental for success in data and AI. YTL also plans to leverage its water expertise, notably from its UK-based Wessex Water, which is highly ranked. The company is discussing providing South Africa with an end-to-end sovereign solution, rather than just building a single data centre.