IJM 1Q profit jumps 44% on construction boost, declares 10 sen special dividend

KUALA LUMPUR (Aug 26): IJM Corporation Bhd (KL:IJM) said it expects a strong showing from its construction division in the current financial year, after stronger construction activities helped lift its first-quarter net profit by 43.7%.

Net profit for the three months ended June 30, 2026 (1QFY2027) jumped to RM137.4 million from RM95.6 million a year earlier, according to the construction and infrastructure group in a bourse filing on Wednesday. Earnings per share rose to 3.92 sen from 2.73 sen.

IJM declared a special dividend of 10 sen per share, payable on Oct 15.

Revenue rose 32.2% to RM2.29 billion from RM1.73 billion a year earlier, mainly driven by the construction and manufacturing and quarrying divisions, while the property development division's revenue also recorded strong revenue growth.

The construction division, in particular, saw revenue rise 36.2% year-on-year, while its pre-tax profit more than doubled to RM73.3 million from RM34.6 million, driven mainly by higher construction activities in tandem with a larger order book.

Revenue from the manufacturing and quarrying division climbed 42.3%, while pre-tax profit rose 13.7%, mainly on higher deliveries of piles and ready-mixed concrete.

The construction division is expected to perform strongly for the rest of FY2027, IJM noted, underpinned by a RM14.5 billion order book, comprising hyperscale data centres, advanced manufacturing and warehousing facilities and road infrastructure projects.

The group also expects its industry division to maintain its strong performance, backed by a solid order book supported by the continued roll-out of data centres, large-scale industrial buildings and infrastructure projects.

Its mature toll concessions are expected to continue providing steady revenue, while the construction of the New Pantai Expressway 2 is expected to provide longer-term earnings visibility.

Meanwhile, IJM said it remains cautious about its property division amid a softening market, weaker consumer sentiment and heightened global uncertainty. Nevertheless, the division’s performance is expected to improve this year, supported by about RM2.2 billion in unbilled property and land sales.

Shares of IJM ended seven sen or 2.51% higher at RM2.86 on Wednesday, valuing the group at RM10.43 billion.

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