DESPITE IJM Corporation Berhad (IJM) posting a stronger revenue of RM1.67 bil, its core net profit declined to RM122.4 mil.
The revenue uplift was driven by higher contributions from the construction and industry divisions, while the weaker bottom line stemmed from reduced profitability in property development and compressed margins within the construction segment.
“Although segment revenue surged +54.1% year-on-year (yoy) to RM1.80 bil for the six months of financial year 2026 (6MFY26), profit before tax grew at a slower pace of +37.4% yoy, primarily due to the execution of lower-margin legacy projects during the period,” said MBSB Research.
Consequently, profit before tax (PBT) margins contracted to 4.0% in 6MFY26 from 4.5% in 6MFY25, reflecting margin pressure despite higher activity levels.
Segment revenue declined – 23.8%yoy to RM570.1 mil during 6MFY26, while PBT falling sharply by – 51.1%yoy to RM34.3 mil, primarily due to weaker sales performance.
Property sales during the period totaled RM555.6 mil, while land sales contributed RM163.4 mil, reflecting subdued demand during the period.
IJM has secured RM5.3 bil worth of new contracts in FY26, with approximately 66% comprising data centre construction projects in Johor Bahru and Elmina.
Domestically, the group continues to pursue opportunities in industrial buildings—including logistics facilities and semiconductor foundries—alongside major infrastructure projects such as the Penang LRT, Penang International Airport expansion, Sarawak development initiatives, and the Merdeka 118 commercial block.
“We expect tendering momentum to remain strong across both public and private sectors, supported by a robust pipeline of high-value projects,” said MBSB. —Nov 28, 2025
Main image: New Straits Times
