Gamuda reports 5% profit rise on stronger domestic construction activity, plans 5 sen dividend

• The group's domestic operations have gained significant momentum, with orders now contributing 41% of the overall RM35 billion construction order book, up from 28% last year.

KUALA LUMPUR (June 26): Gamuda Bhd (KL:GAMUDA) recorded a 4.68% year-on-year increase in its third-quarter net profit, driven by robust performance within its domestic construction division, where earnings about tripled, offsetting a drop in the group's property earnings.

For the quarter ended April 30, 2025 (3QFY2025), the diversified infrastructure and property company's net profit climbed to RM246.84 million from RM235.8 million in 3QFY2024, with revenue rising 24.08% to RM3.09 billion from RM2.49 billion. Its domestic construction division's earnings jumped 169% to RM104.08 million from RM38.72 million.

The group declared a second interim dividend of five sen per share, bringing its year-to-date dividend to 10 sen per share—25% more than the previous year's eight sen. The payment date will be determined and announced later.

The group's domestic operations have gained significant momentum, with orders now contributing 41% of the overall RM35 billion construction order book, up from 28% last year.

Overall, the construction segment's quarterly revenue grew 4% to RM2.63 billion in 3QFY2025, from RM2.52 billion a year before, while net profit jumped 40% to RM174.5 million from RM124.78 million.

Conversely, its property segment posted a revenue of RM614.99 million in 3QFY2025, more than halved from the RM1.28 billion recorded previously. The segment's profit declined by 35% to RM72.34 million in 3QFY2025 from RM111.02 million.

Meanwhile, Gamuda stated in a separate statement that its data centre investments are beginning to yield positive returns, contributing meaningfully to the group’s engineering division pre-tax earnings. "This development marks a significant milestone for the group’s expansion strategy, positioning it well for the growing demand for digital infrastructure," it added.

For the first nine months of the financial year 2025 (9MFY2025), Gamuda's net profit rose 4.91% to RM671.08 million, up from RM639.64 million in 9MFY2024. Revenue for the period increased 29% to RM11.13 billion compared to RM8.63 billion in the same period, primarily lifted by its construction segment.

Looking ahead, the group anticipates that the next quarter’s performance will be largely driven by both overseas and domestic construction activities, including the construction of several data centres and higher contributions from the property division’s various quick-turnaround projects (QTPs).

“The resilience of the group is underpinned by its construction order book of RM35 billion and unbilled property sales of RM7.7 billion,” it said, adding its net gearing stood at a comfortable 45%, well below its self-imposed gearing limit of 70%.

Shares in Gamuda closed four sen or 0.85% lower at RM4.65 on Thursday, valuing the group at RM26.83 billion.

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