Asia Digital Engineering (ADE), the MRO arm of Capital A Berhad, has reported a record second-quarter performance, with revenue rising 29% year on year to RM284 million, driven by higher-value base maintenance checks and strong workshop demand. The Malaysian MRO provider generated RM284 million in revenue during 2Q26, representing a 29% increase compared with the corresponding period last year.
The growth was supported by an increase in higher-value base maintenance checks as well as stronger workshop activity. ADE said workshop orders increased as demand for component repair and refurbishment grew alongside the induction of heavier base maintenance checks.
The increase in heavier maintenance checks has contributed to higher-value work flowing through ADE’s facilities, while growth in component repair and refurbishment has strengthened its workshop business. The combination of base maintenance and workshop activity reflects the company’s continued focus on expanding its MRO capabilities as demand for aircraft maintenance and component support increases across the region.
ADE recorded RM69 million in EBITDA during the quarter, maintaining a 22% margin. The company also reported a 14% profit-after-tax (PAT) margin.
Profitability remained resilient despite higher depreciation associated with the acquisition of new tooling. ADE said strategic debt refinancing helped offset the impact of the increased depreciation.
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ADE’s performance in the second quarter contributed to a strong first half of 2026. For the six months ended June 30, the company recorded revenue of more than RM500 million, marking a 19% year-on-year increase.
Operational efficiency also supported profitability during the period. EBITDA increased 16% year-on-year to RM112 million, while net operating profit (NOP) rose 52% to RM62 million.
The significant increase in NOP highlights the contribution of stronger operating performance and improved efficiency to ADE’s first-half results.
ADE’s performance has also become an increasingly important contributor to the wider Capital A group. Together with logistics company Teleport, ADE accounted for more than 70% of Capital A’s total group revenue in the first half of 2026.
The contribution comes as Capital A continues to focus on its core businesses following the disposal of its airline operations and its official exit from Malaysia’s Practice Note 17 (PN17) status. For ADE, the latest results underline the growing scale of its MRO operations and the contribution of higher-value maintenance work, component repair and refurbishment to its business.
The company’s continued investment in tooling and maintenance capabilities is expected to support its ability to handle more complex and heavier maintenance requirements as it expands its position in the regional MRO market.
