Higher toll collections lift WCE's 4Q25 revenue
The concession segment saw toll collection revenue surge 107% year-on-year.
PETALING JAYA: WCE Holdings Bhd , the operator of the 233km West Coast Expressway, expects to move closer to profitability as more sections of the expressway open, boosting toll revenue and easing the impact of financing costs.
The group said its outlook is supported by the continued ramp-up in sectional toll revenue and the scheduled opening of the remaining three sections: Section 3 (Shah Alam Expressway-Federal Highway Route 2), Section 4 (Federal Highway Route 2-New North South Klang Straits Bypass) and Section 7 (Assam Jawa-Tanjung Karang)
'As the full alignment becomes operational, the group anticipates a transition toward sustained profitability,' WCE said in a filing with Bursa Malaysia.
WCE's revenue surged in its fourth quarter ended March 31 (4Q25), driven by higher construction activity and rising toll collection from newly opened sections of the West Coast Expressway.
However, interest costs kept the group in the red.
For 4Q25, WCE's topline surged nearly 250% to RM318.13mil, compared with RM91.57mil in the corresponding quarter a year ago.
Despite the stronger revenue, the group remained in the red, although its net loss narrowed significantly to RM13.64mil from RM60.76mil in 4Q24.
WCE attributed the continued losses mainly to interest costs related to completed sections, which amounted to RM54.8mil in 4Q25 compared with RM43.8mil in 4Q24.
For its full financial year 2025 (FY25), the group's revenue rose 2.3% to RM629.1mil from RM614.7mil in FY24.
However, the group's net loss widened slightly to RM138.64mil, compared with RM133.74mil in the previous financial year.
Still, WCE recorded earnings before interest, taxes, depreciation and amortisation of RM98.2mil in FY25, indicating the group is profitable at an operating level.
The concession segment saw toll collection revenue surge 107% year-on-year (y-o-y), driven by increased traffic following the opening of three key sections.
However, overall concession revenue fell 18%, due to the recognition of lower construction revenue following project completion.
In 4Q25 alone, concession revenue rose 144% y-o-y, driven by higher construction activity for rest and service areas along the expressway and higher toll collections.
The West Coast Expressway runs from Banting, Selangor to Taiping, Perak, under a build-operate-transfer concession of up to 60 years from Dec 20, 2013.
As at March 31, eight of 11 sections of the expressway were operational, covering 180km.
Meanwhile, the construction segment, undertaken by WCE Maju Sdn Bhd, saw FY25 revenue soar 431%, supported by intensified project execution.
Key ongoing work includes an access road to a mixed development in Kota Seri Langat in Selangor, construction of Section 7B, and 10 rest areas.
The construction segment posted a pre-tax profit of RM3.7mil, reversing a loss of RM4.1mil in FY24.
'Looking ahead, the continued ramp-up in sectional toll revenue is expected to further improve the group's financial performance in terms of cash flows and operating results,' WCE said.
'In the long term, as the full WCE alignment becomes operational, revenue growth is anticipated to outpace financing costs, supporting a transition to sustained profitability.'
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