RHB expects Gamuda (GAM)’s quarter two financial year 2026 (2QFY26) core earnings to be at MYR220-240 mil, translating to year-on-year (YoY) growth of between 4% and 13.7%, backed by higher progress of existing projects such the Sydney Metro West project.
“While 60-70% of GAM’s orderbook is in the early stages, we think some ongoing jobs nearing completion could see provisions being restored, leading to margin recalibration,” said RHB.
With GAM’s balance orderbook estimated at MYR45 bil at end 2025, it would need at least MYR20-25 bil worth of new job wins to achieve its targeted orderbook of MYR50-55 bil by end 2026.
Anticipated potential wins by end 2026 include:
i) The Sabah water supply scheme.
ii) Direct Sunshine Coast Rail Line in Queensland.
iii) the Hunter Transmission project.
GAM was recently selected as the preferred bidder by Edify Energy for two solar and battery energy storage system (BESS) projects in Queensland – the Smokey Creek and Guthrie’s Gap project and the Ganymirra and Majors Creek project.
“We estimate that these jobs would be worth at least MYR3 bil in total, and should help fill the gaps from any delays in early contractor involvement works related to pump hydro projects, which usually take longer to be converted into full-fledged contracts,” said RHB.
GAM was also shortlisted via a consortium to operate and maintain Melbourne’s train network with works expected to commence in late 2027. Data centres (DC) likely to make up 10-15% of GAM’s total orderbook in the next few years.
“We think DC jobs will continue being a meaningful domestic contributor to the orderbook with an 8-10% composition in the group’s total orderbook as of end 2025 as per our estimates,” said RHB.
DC build-ups are expected to remain in demand with Microsoft’s South-East Asia Region 3 in Nov 2025, which likely spans 370 acres of land in Johor, in RHB’s view. —Mar 4, 2026
Main image: The Exchange Asia
