Gamuda’s Latest Financials: Navigating a Shifting Landscape with Strong Domestic Growth
Malaysia’s infrastructure and property giant, Gamuda Berhad, has just unveiled its latest quarterly report for the period ended 30 April 2025. This report offers a fascinating glimpse into how the conglomerate is performing amidst evolving market dynamics, showcasing resilient profit growth driven by its domestic construction segment, even as it manages a strategic recalibration in its property division.
While the headline revenue figures might raise an eyebrow, a deeper dive reveals a company adept at capitalizing on local opportunities and expanding its international footprint. The report highlights a solid year-to-date profit increase and a noteworthy dividend announcement, setting the stage for what looks to be a promising, albeit strategically shifting, future. Let’s unpack the key figures and insights from this comprehensive update.
Core Financial Highlights: A Tale of Two Segments
Gamuda’s financial performance for the nine months ended 30 April 2025 (Year-to-Date) demonstrates a clear upward trend in profitability, despite some segment-specific fluctuations in the most recent quarter. Here’s a snapshot of the key figures:
Individual Quarter (Q3 FY2025 vs Q3 FY2024)
30 April 2025
Total Revenue: RM3,249.8 million
Profit Before Taxation (PBT): RM280.8 million
Profit for the Period: RM257.5 million
Profit Attributable to Owners: RM246.8 million
Basic Earnings Per Share (EPS): 4.30 sen
30 April 2024
Total Revenue: RM3,797.9 million
Profit Before Taxation (PBT): RM268.9 million
Profit for the Period: RM242.5 million
Profit Attributable to Owners: RM235.8 million
Basic Earnings Per Share (EPS): 4.26 sen
While the group’s total revenue for the quarter saw a 14% decrease, primarily due to the absence of a “lumpy” revenue recognition from a Singapore property project in the previous year, the underlying operational strength is evident. Excluding this one-off factor, the group’s revenue actually grew by 9%, powered by robust domestic construction projects. This translated into a healthy 5% increase in profit attributable to owners, reaching RM246.8 million, driven by a remarkable tripling of domestic construction earnings.
Year-to-Date (9 Months Ended 30 April 2025 vs 9 Months Ended 30 April 2024)
30 April 2025
Total Revenue: RM11,451.3 million
Profit Before Taxation (PBT): RM810.8 million
Profit for the Period: RM706.3 million
Profit Attributable to Owners: RM671.1 million
Basic Earnings Per Share (EPS): 11.81 sen
30 April 2024
Total Revenue: RM10,010.0 million
Profit Before Taxation (PBT): RM748.2 million
Profit for the Period: RM660.5 million
Profit Attributable to Owners: RM639.6 million
Basic Earnings Per Share (EPS): 11.72 sen
For the cumulative nine-month period, Gamuda delivered a strong performance with revenue increasing by 14% to RM11.5 billion and profit attributable to owners rising 5% to RM671.1 million. This sustained growth underscores the company’s ability to execute on its projects and adapt to market conditions.
Segmental Performance: Domestic Construction Shines
A closer look at the segmental breakdown reveals the key drivers:
| Segment (9 Months YTD) | Net Profit (30-Apr-25, RM’000) | Net Profit (30-Apr-24, RM’000) | Change (%) |
|---|---|---|---|
| Total Construction | 453,661 | 364,016 | +25% |
| – Malaysia Construction | 238,173 | 140,175 | +70% |
| – Overseas Construction | 215,488 | 223,841 | -4% |
| Total Property | 217,417 | 275,624 | -21% |
| – Malaysia Property | 67,911 | 66,066 | +3% |
| – Overseas Property | 149,506 | 209,558 | -29% |
The domestic construction segment was a standout performer, with net profit surging by 70% year-on-year for the nine-month period. This strong performance is attributed to a growing contribution from domestic jobs, which now account for 41% of Gamuda’s impressive RM35 billion construction orderbook, up from 28% last year.
The property division, while showing a headline decrease in profit due to the aforementioned “lumpy” Singapore project completion, demonstrated underlying strength. Excluding this specific project, property revenue and net profit actually grew by 37% and 12% respectively year-to-date, thanks to robust contributions from Quick Turnaround Projects (QTPs), especially Vietnam’s Eaton Park development, which has already surpassed RM2 billion in sales within a year.
Financial Health: A Strong Balance Sheet
As of 30 April 2025, Gamuda’s financial position remains robust:
30 April 2025
Total Assets: RM28,996.5 million
Total Equity: RM12,111.8 million
Net Assets Per Share: RM2.07
Cash and Bank Balances: RM3,483.5 million
31 July 2024
Total Assets: RM26,657.8 million
Total Equity: RM11,522.1 million
Net Assets Per Share: RM2.05
Cash and Bank Balances: RM2,700.3 million
The company maintains a healthy balance sheet with a comfortable net gearing of 45%, well below its self-imposed limit of 70%. This strong financial standing provides a solid foundation for future growth and strategic investments.
Risks and Prospects: Building for the Future
Gamuda’s future prospects are underpinned by a substantial construction orderbook of RM35 billion and unbilled property sales of RM7.7 billion, offering significant earnings visibility. The group is actively securing new projects and diversifying its geographical and sectoral exposure.
New Project Wins & Strategic Growth
In the past six months and the current quarter, Gamuda has secured an impressive RM15.8 billion in new project awards. These include major infrastructure and data centre projects across Malaysia, Australia, and Taiwan, demonstrating the company’s strong competitive edge and strategic focus on high-growth areas. Notable wins include:
- Penang LRT – Mutiara Line Phase 1 (RM5.0 billion)
- Xizhi Donghu (Xi-Dong) Mass Rapid Transit Construction Turnkey Project in Taiwan (RM3.2 billion)
- Ulu Padas Hydroelectric Project in Malaysia (RM2.3 billion)
- Enabling works for Port Dickson data centres development (RM1.0 billion)
- Several large-scale projects in Australia, including the Goulburn River Solar Farm and Boulder Creek Wind Farm.
These new awards, particularly in data centres and renewable energy, highlight Gamuda’s pivot towards emerging high-value sectors, complementing its traditional strengths in rail and highway infrastructure.
Engineering & Construction Outlook
Gamuda Engineering’s projects are progressing well. The Penang Silicon Island reclamation works are on track at 11% completion. The RM1.968 billion Sg. Rasau Water Supply Scheme is 43% complete, though it faced a pond embankment collapse that is now undergoing remediation. Hyperscale data centre projects are ahead of schedule, with the Elmina Business Park project 55% complete and AIMS Data Centre Phase 3 & 4 in Cyberjaya fully completed. Overseas projects in Taiwan (e.g., Kaohsiung MRT, Taoyuan City Underground Railway) and Australia (e.g., Sydney Metro West, Coffs Harbour Bypass) are also advancing as planned, despite some minor delays or change orders typical of large-scale infrastructure.
Property Development & Diversification
Gamuda Land recorded a 10% year-on-year increase in cumulative property sales to RM2.55 billion for the nine months, driven by both international and domestic markets. International projects, especially Vietnam’s Eaton Park and other QTPs, accounted for 60% of total sales, showcasing successful geographic diversification. The acquisition of 336 acres adjacent to Gamuda Cove will add RM2.2 billion in gross development value (GDV) and extend the township’s development horizon.
In the UK, Gamuda Land is strategically expanding its Purpose-Built Student Accommodation (PBSA) portfolio, with new projects in Glasgow and London targeting 3,000 student beds by 2029. This move into recurring-income assets complements its capital-growth investments and enhances portfolio resilience.
Potential Risks
While the outlook is largely positive, potential risks include the inherent challenges of managing large-scale, complex projects, which can be subject to delays, cost overruns, and unforeseen site conditions (as seen with Sg. Rasau and some Taiwan projects). Foreign currency fluctuations also pose a risk, as evidenced by the net foreign exchange loss reported in other comprehensive income due to a stronger Ringgit Malaysia. The company’s reliance on new project awards to replenish its order book also means it is susceptible to economic cycles and government spending on infrastructure.
Shareholder Returns: Dividends Announced
Gamuda continues to reward its shareholders. For the financial year ending 31 July 2025, the company has:
- Paid a First Interim Dividend: 5 sen per ordinary share (adjusted for a 1:1 bonus share issuance). Of this, 75% was reinvested into new Gamuda shares via its Dividend Reinvestment Plan (DRP), and the remaining 25% was paid in cash on 10 March 2025.
- Proposed a Second Interim Dividend: The Board of Directors has proposed a second interim dividend of 5 sen per ordinary share. The ex-dividend and book closure dates will be announced later.
This consistent dividend payout reflects the company’s healthy cash flow generation and commitment to delivering value to its investors.
Summary and Investment Recommendations
Gamuda’s latest quarterly report paints a picture of a dynamic and strategically agile conglomerate. The company has successfully navigated a complex operating environment, demonstrating strong year-on-year growth in core profitability, largely driven by a surge in domestic construction activities and the strategic expansion of its property Quick Turnaround Projects (QTPs).
The robust construction orderbook of RM35 billion, coupled with RM7.7 billion in unbilled property sales, provides excellent earnings visibility for the coming years. Gamuda’s proactive diversification into new high-growth sectors like data centres and renewable energy, alongside its expansion into international property markets with recurring income streams like student accommodation, positions it well for sustainable long-term growth.
However, investors should be mindful of the inherent risks associated with large-scale projects, including potential delays and cost adjustments, as well as the impact of foreign exchange fluctuations on overseas earnings. The company’s ability to continue securing high-value contracts and effectively execute its diverse project pipeline will be crucial for maintaining its growth trajectory.
Key points to consider:
- Strong Orderbook and Unbilled Sales: Provides a clear runway for future revenue and earnings.
- Domestic Construction Resilience: The Malaysian segment is a significant profit driver.
- Strategic Diversification: Expansion into data centres, renewables, and international property (especially QTPs and PBSA) reduces reliance on traditional segments and geographies.
- Healthy Balance Sheet: Low gearing provides financial flexibility for new opportunities.
- Foreign Exchange Risk: Overseas operations expose the company to currency translation impacts.
This blog post is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult with a qualified financial advisor before making any investment decisions.
What are your thoughts on Gamuda’s strategic shift towards domestic construction and its international property ventures? Do you think the company can maintain this growth momentum and successfully integrate its diverse new projects in the coming years?
Share your insights and perspectives in the comments section below! We’d love to hear from you.
