IJM Corp’s 4Q net profit falls almost 30% on credit loss from West Coast Expressway

• For the quarter, IJM said construction revenue grew 60.4% from more projects and a bigger order book. Its industry division also did well with strong orders and ongoing data centre and infrastructure work.

KUALA LUMPUR (May 29): IJM Corporation Bhd’s (KL:IJM) net profit for the fourth quarter was down almost 30% to RM128.95 million, mainly due to a RM54 million expected credit loss related to the West Coast Expressway. Last year’s profits included one-time gains, including a RM67 million fair value gain from WCE Holdings Bhd warrants.

IJM in its filing with Bursa Malaysia said that without these one-off losses, pre-tax profit would have risen 40.8% to RM311.4 million.

Revenue for the quarter ended March 31, 2025 (4QFY2025) was marginally higher at RM1.8 billion.

For the quarter, IJM said construction revenue grew 60.4% from more projects and a bigger order book. Its industry division also did well with strong orders and ongoing data centre and infrastructure work. The toll division was affected by the RM54 million loss, while its port business faced lower cargo volumes.

The company declared an interim dividend of five sen and a one sen special dividend, bringing the total payout to eight sen per share for the year.

For the full year ended March 31, 2025, net profit dropped 32% to RM403.4 million from RM600.3 million, while revenue increased to RM6.3 billion from RM5.9 billion.

Group CEO Datuk Lee Chun Fai said FY2025 was a year of progress despite economic challenges, with growth in construction, steady demand in industry and new wins in data centres, logistics and the UK. IJM’s order book currently stands at RM7.6 billion, plus RM3.5 billion from a new UK joint venture, boosting construction strength and its UK presence.

IJM said it expects growth in construction and industry, focusing on completing its RM7.6 billion order book and expanding data centre projects in FY2026. Property and toll businesses should provide stable income, while the port business faces challenges from global trade issues. The group remains confident despite economic uncertainty.

IJM’s share price closed 0.82% lower to RM2.43 on Thursday, giving it a market capitalisation of RM8.5 billion. Year to date, the stock is down 20%.

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