Capital A Bhd is targeting an exit from Practice Note 17 (PN17) status after a substantial gain from the disposal of its aviation business, part of its completed regularisation plan, lifted the group to a positive shareholders’ equity position.
The sale of the airline business generated a gain of RM9.75 billion, propelling Capital A’s net profit for the fourth quarter ended Dec 31, 2025, to RM10.2 billion, compared with a net loss of RM1.66 billion in the same period a year earlier, according to a Bursa Malaysia filing on Wednesday.
Quarterly revenue increased 48.3% year-on-year to RM769.08 million from RM518.51 million. For the full year, the group reported a net profit of RM13.03 billion, swinging from a net loss of RM501.25 million in FY2024, largely due to the disposal gain. Cumulative revenue rose 16.7% to RM1.99 billion from RM1.71 billion.
“The disposal has restored the group to positive equity of RM937 million, marking a clear financial reset. We now look forward to lifting our PN17 status and drawing a firm line under past challenges,” said Capital A CEO Tan Sri Tony Fernandes.
Excluding its divested aviation business, Capital A’s continuing operations “largely met” internal targets. EBITDA stood at RM443 million, slightly below the guided range of RM500 million to RM600 million, while revenue of RM3.4 billion was marginally under the RM3.5 billion to RM4 billion range. The net operating profit (NOP) margin of 7% landed at the lower end of the 7% to 10% target range.
No dividend has been proposed for the financial year.
Capital A’s ongoing operations now consist of five key units: Asia Digital Engineering (ADE) — a maintenance, repair and operations unit, Teleport (logistics), AirAsia Move (travel platform), Santan (F&B), and AirAsia Next (brand licensing and digital IP).
For the current fiscal year, the group has set internal targets of RM3.8 billion in revenue, RM600 million in EBITDA, and a 7% NOP margin of RM266 million. Fernandes noted that the group’s performance depends on each of the five business units achieving their respective objectives.
He added that Capital A is ready to embark on its next phase of growth, focusing on its five tech-driven businesses.
Following the announcement, Capital A shares closed 1.5 sen, or 2.54%, higher at 60.5 sen, giving the company a market capitalisation of RM2.68 billion.
