PETALING JAYA: IJM Corp Bhd
saw its net profit slipping 11.4% to RM65.8mil for the second quarter ended September 30, 2025 (2Q26), mainly due to unrealised foreign exchange losses and lower earnings from the property and port segments.
This was despite posting a strong top-line performance, driven by a surge in construction activity and growing exposure to data centre projects.
For the first half (1H26), revenue climbed 16.7% to RM3.41bil, underpinned by strong momentum in the construction and industry divisions, as net profit was slightly higher at RM161.4mil.
IJM's construction segment saw a 54.1% jump in revenue to RM1.79bil in 1H26, supported by higher activity in civil engineering, industrial facilities and data centre projects. Segment profit before tax rose 37.4% to RM71.9mil, aided by stronger contributions from joint ventures.
Property development, however, remained under pressure, as segment revenue declined 23.8% to RM570.1mil, while pre-tax profit more than halved to RM34.3mil, reflecting lower sales and weaker contributions from associates and joint ventures amid a softer domestic property market.
The industry division, which comprises manufacturing and quarrying, delivered a steady performance. Revenue rose 16.2% to RM621.7mil, driven by higher deliveries of piles and ready-mixed concrete, while segment profit increased 16.3% to RM106.8mil.
Within the infrastructure portfolio, toll operations saw first-half revenue decline 6.7% due to the expiry of an overseas concession in July 2024, but profit before tax more than doubled to RM30.6mil thanks to stronger contributions from local toll highways and its Argentine associate.
The port division, meanwhile, struggled with weaker cargo volumes. Revenue fell 17.4% to RM197.8mil and profit dropped to RM46.2mil after a key customer undertook major plant maintenance amid subdued steel demand and global trade uncertainty.
Forex volatility also took a toll, as in 2Q26 alone, the group recorded unrealised forex losses of RM59.6mil, compared with a gain of RM17.2mil in the preceding quarter, contributing to the quarter-on-quarter drop in earnings.
IJM remains financially resilient, with a net gearing ratio of 0.4 times and healthy liquidity. The board has maintained its interim dividend at two sen per share, signalling confidence in cashflow stability.
As at end-September, outstanding construction orders stood at a record RM14.4bil, including RM5.3bil from recently secured large-scale data centre projects in Johor and Selangor and the New Pantai Expressway Extension (NPE2).
Group chief executive and managing director Datuk Lee Chun Fai revealed that IJM Corp had also secured a new RM2.1bil data centre contract after the reporting period, its largest to date.
Looking ahead, IJM Corp anticipates its construction and industry segments to remain the primary growth engines, sustained by the rollout of data centres and infrastructure works.
The toll division is set to generate stable recurring cashflows, while NPE2 is expected to strengthen long-term earnings visibility.
The port business, however, is likely to face a softer year due to global trade uncertainty, while property development may continue to be shaped by cautious consumer sentiment.
