Gamuda Berhad’s Q3 FY2025: A Deep Dive into Growth Amidst Shifting Sands
Greetings, fellow investors! Today, we’re unboxing the latest financial report from one of Malaysia’s leading infrastructure and property developers, Gamuda Berhad, for its third quarter ended 30 April 2025. This report offers a compelling narrative of growth, particularly in its domestic construction segment, even as it navigates the complexities of international project cycles and foreign exchange fluctuations. The headline? A commendable 5% increase in quarterly net profit, alongside a proposed second interim dividend, signaling continued shareholder returns. Let’s delve deeper into the numbers and what they mean for Gamuda’s journey ahead.
Core Financial Highlights: A Tale of Resilience and Strategic Shifts
Gamuda’s Q3 FY2025 performance showcases a robust underlying business, despite some notable shifts in revenue recognition, particularly from its overseas property ventures. Here’s a look at the key figures:
Quarterly Performance (Q3 FY2025 vs Q3 FY2024)
Q3 FY2025
Revenue: RM3,089,570,000
Profit Before Tax: RM280,819,000
Profit for the Period: RM257,462,000
Profit Attributable to Owners: RM246,836,000
Basic Earnings Per Share: 4.30 sen
Q3 FY2024
Revenue: RM2,490,081,000
Profit Before Tax: RM268,881,000
Profit for the Period: RM242,473,000
Profit Attributable to Owners: RM235,796,000
Basic Earnings Per Share: 4.26 sen
While reported revenue for the quarter saw a 14% decrease, this was primarily due to a “lumpy” revenue recognition from a Singapore property project in the previous year. Excluding this specific project, the group’s revenue actually grew by a healthy 9%, largely propelled by strong domestic construction activities. This underlying growth translated into a 5% increase in net profit attributable to owners, reaching RM246.8 million.
Year-to-Date Performance (9 Months FY2025 vs 9 Months FY2024)
9 Months FY2025
Revenue: RM11,127,810,000
Profit Before Tax: RM810,770,000
Profit for the Period: RM706,313,000
Profit Attributable to Owners: RM671,078,000
Basic Earnings Per Share: 11.81 sen
9 Months FY2024
Revenue: RM8,625,531,000
Profit Before Tax: RM748,235,000
Profit for the Period: RM660,537,000
Profit Attributable to Owners: RM639,640,000
Basic Earnings Per Share: 11.72 sen
For the cumulative nine months, Gamuda’s revenue surged by 29% to RM11.13 billion, with profit attributable to owners increasing by 5% to RM671.1 million. This strong year-to-date performance underscores the group’s ability to maintain growth momentum across its core businesses.
Segmental Deep Dive: Construction Powers Ahead, Property Adapts
A closer look at Gamuda’s business segments reveals interesting dynamics:
Construction Segment
Quarterly Construction Revenue: Up 4%
Quarterly Construction Net Profit: Up 40%
9 Months Construction Revenue: Up 21%
9 Months Construction Net Profit: Up 25%
The domestic construction sector was a key growth driver, with earnings tripling to RM104 million for the quarter, compared to RM39 million in the corresponding quarter last year. This strong performance is attributed to the increasing contribution of domestic jobs, which now account for 41% of Gamuda’s impressive RM35 billion construction orderbook, up from 28% last year. This shift towards domestic projects provides a solid foundation for future earnings.
Property Development Segment
Quarterly Property Revenue: Down 52% (Headline)
Quarterly Property Net Profit: Down 35% (Headline)
9 Months Property Sales: Up 10% to RM2.6 billion
9 Months Property Revenue: Down 2% (Headline)
9 Months Property Net Profit: Down 21% (Headline)
While headline property revenue and net profit decreased due to the absence of the “lumpy” Singapore property project’s recognition last year, the underlying performance is quite positive. Excluding this one-off effect, property revenue grew 31% and net profit soared 148% for the quarter, driven by strong contributions from Quick Turnaround Projects (QTPs), especially Vietnam’s Eaton Park development, which has achieved over RM2 billion in sales within a year. Year-to-date property sales also saw a healthy 10% increase, spearheaded by these QTPs in Vietnam.
Financial Health and Strategic Outlook
Gamuda maintains a healthy financial position, which is crucial for its ambitious project pipeline.
| Financial Metric (as at 30 April 2025) | Value (RM’000) |
|---|---|
| Total Assets | 28,996,533 |
| Total Equity | 12,111,787 |
| Total Liabilities | 16,884,746 |
| Cash and Bank Balances | 3,483,464 |
| Net Gearing | 45% |
The Group’s net gearing stands at a comfortable 45%, well below its self-imposed limit of 70%, indicating ample financial capacity for future endeavors. The cash and bank balances have also seen a significant increase.
Cash Flow Dynamics (9 Months FY2025)
9 Months FY2025
Net Cash Generated from Operating Activities: RM259,165,000
Net Cash Used in Investing Activities: (RM767,671,000)
Net Cash Generated from Financing Activities: RM1,374,033,000
9 Months FY2024
Net Cash Generated from Operating Activities: (RM602,715,000)
Net Cash Used in Investing Activities: (RM519,048,000)
Net Cash Generated from Financing Activities: RM1,501,041,000
A notable turnaround in operating cash flow, from a net outflow last year to a net inflow this year, reflects improved operational efficiency. Investing activities saw increased outflows, consistent with the group’s land banking strategy and ongoing project developments. Financing activities remained strong, contributing significantly to the overall cash position.
Outlook and Strategic Initiatives
Gamuda’s future prospects are underpinned by its robust construction orderbook of RM35 billion and unbilled property sales of RM7.7 billion. The group anticipates that the next quarter’s performance will be largely driven by both overseas and domestic construction activities, including several data center projects, and increased contributions from its property division’s QTPs.
Recent Project Wins (FY2025)
Gamuda has been busy securing new contracts, further bolstering its order book:
- Penang LRT – Mutiara Line Phase 1 (Malaysia): RM8.3 billion (Gamuda’s 60% subsidiary)
- Xizhi Donghu (Xi-Dong) Mass Rapid Transit Construction Turnkey Project (Taiwan): RM4.3 billion (Gamuda’s 75% JV)
- Enabling works for Port Dickson data centres development (Malaysia): RM1.01 billion
- Boulder Creek Wind Farm (Australia): RM670 million
- Ulu Padas Hydroelectric Project (Sabah, Malaysia): RM3.05 billion (Gamuda’s 75% JV)
- And several other significant projects in Australia and Taiwan.
These new awards highlight Gamuda’s diversified geographical reach and its expanding footprint in high-growth sectors like data centers and renewable energy.
Key Project Progress Updates:
- Penang Silicon Island (Island A): Reclamation works are on track at 11% completion.
- Selangor’s Sg. Rasau Water Supply Scheme: 43% complete, with remedial works for pond embankment collapse progressing.
- Data Centre Projects: Hyperscale data center at Elmina Business Park is 55% complete, ahead of schedule. AIMS Data Centre Phase 3 & 4 in Cyberjaya achieved overall completion.
- Australia: Sydney Metro West (79% complete), Coffs Harbour Bypass (66% complete), M1 Motorway Extension (66% complete) are all on schedule.
- Taiwan: Various MRT and underground transmission line projects are progressing well, with several hitting key excavation or construction milestones.
- Singapore: Gali Batu Multi-Storey Bus Depot completed with TOP obtained, and Defu Station and West Coast Stations projects are on track.
Property Development Initiatives:
- Land Banking: Acquired 336 acres adjacent to Gamuda Cove, adding RM2.2 billion in GDV and extending its development horizon.
- International Expansion: Overseas projects accounted for 60% of total sales, with Vietnam sales up 165% year-on-year, driven by Eaton Park and other QTPs.
- UK Student Accommodation: Expanding its PBSA portfolio with a new 492-bed project in Glasgow, targeting 3,000 student beds by 2029.
- Malaysian Townships: Gamuda Cove, Gamuda Gardens, Gardens Park, and twentyfive7 continue to see strong take-up rates for residential and commercial offerings.
Corporate Sustainability:
Gamuda’s commitment to ESG (Environmental, Social, and Governance) is evident with its FTSE4Good score improving to 3.5 (out of 4.0), building on its inclusion in the FTSE4Good Bursa Malaysia Indices in 2023. This reflects strengthened efforts towards high standards of ESG performance.
Dividends: A Return to Shareholders
Gamuda continues its commitment to shareholder returns:
- First Interim Dividend (FY2025): 10 sen per ordinary share (adjusted to 5 sen after a 1:1 bonus share issuance). 75% was reinvested into new shares, with the remaining 25% paid in cash on 10 March 2025.
- Proposed Second Interim Dividend (FY2025): The Board proposed a second interim dividend of 5 sen per ordinary share, with dates to be announced later.
This consistent dividend policy, even with the bonus share adjustment, demonstrates the company’s confidence in its financial health and future earnings.
Summary and Investment Recommendations
Gamuda Berhad’s Q3 FY2025 report paints a picture of a well-managed company leveraging its core strengths in construction and strategically growing its property portfolio, particularly through quick turnaround projects in Vietnam and diversified ventures in the UK and Australia. The robust domestic construction order book provides a strong revenue pipeline, while the healthy balance sheet offers financial flexibility for future expansion. The consistent dividend payouts further enhance its appeal to investors seeking returns.
However, as with any dynamic business, there are factors to monitor:
- Lumpy Revenue Recognition: The impact of large, one-off project completions (like the Singapore property project) can create volatility in quarterly revenue and profit figures, requiring investors to look at underlying trends and year-to-date performance.
- Foreign Currency Translation: The report noted a significant foreign currency translation loss due to the stronger Ringgit Malaysia. While this is a non-cash item, sustained currency fluctuations could impact the reported value of overseas assets and earnings in Ringgit terms.
- Project Execution and Timelines: While most projects are on track, some have experienced or are applying for Extensions of Time (EOT) due to unforeseen site conditions or other factors. Monitoring these closely will be important for overall project delivery and cost management.
- Global Economic Conditions: The performance of overseas projects in Australia, Taiwan, and Singapore remains susceptible to global economic shifts, interest rate changes, and geopolitical developments, which could influence project demand and profitability.
Overall, Gamuda appears to be strategically positioned for sustained growth, balancing domestic strength with international diversification. Its focus on high-growth areas like data centers and renewable energy, coupled with a resilient property development strategy, provides a compelling outlook.
What are your thoughts on Gamuda’s latest performance? Do you think the company can maintain this growth momentum in the next few years, especially with its expanding international footprint? Share your views in the comments below!
For more detailed analysis and financial updates, stay tuned to our blog.
