PETALING JAYA: IJM Corp Bhd
’s net profit tumbled by 86% year-on-year (y-o-y) for the third quarter ended Dec 31, 2025 (3Q26) due to lower earnings recorded by its property development and port divisions as well as unfavourable unrealised foreign exchange losses.
For 3Q26, the group’s net profit fell to RM15.76mil, or earnings per share of 0.45 sen. This was despite a 4% y-o-y growth in revenue to RM1.6bil.
For the nine-month period ended Dec 31, 2025 (9M26), IJM’s net profit slid by 35% y-o-y to RM177.14mil. Revenue, on the other hand, rose by 12% y-o-y to RM5.01bil.
IJM said the lower earnings in both 3Q26 and 9M26 was due to the lower profit recorded by its property development and port divisions as well as the unfavourable unrealised foreign exchange losses of RM60.8mil and RM103.2mil for 3Q26 and 9M26 respectively compared with losses of RM3.5mil and RM73.4m for 3Q25 and 9M25 respectively.
Meanwhile, the company said the higher revenue in 3Q26 and 9M26 was mainly contributed to the group’s construction and manufacturing and quarrying divisions.
For 3Q26, revenue for the group’s construction segment increased by 52.9% y-o-y, primarily due to higher construction work activities during the period in tandem with the higher order book. Pre-tax profit increased by 118.9% y-o-y for 3Q26, mainly due to the higher revenue.
Meanwhile, revenue for the property development division decreased by 53.2% y-o-y mainly due to lower sales achieved by the division and the high base effect from a land sale in Penang recorded in 3Q25.
This division recorded pre-tax losses of RM42mil for 3Q26 compared with a pre-tax profit of RM170.6mil for 3Q25. The drop was mainly attributable to lower revenue, and the non-recurrence of the aforementioned land sale gain.
As for IJM’s manufacturing and quarrying segment, revenue for 3Q26 was up by 25.2% y-o-y, principally due to higher deliveries of piles, quarry and ready-mixed concrete. Pre-tax profit for 3Q26 rose by 7.9% y-o-y.
Moreover, the group recorded a 2.1% y-o-y decrease in revenue in 3Q26 for the toll division mainly due to unfavourable traffic mix and the weaker rupee at its overseas tollways.
The company said pre-tax profit, on the other hand, improved significantly mainly due to higher profit contributed by the local tollways, lower losses from its WCE associate and higher share of profit from its Argentinian associate.
Revenue for the port segment in 3Q26 was down by 4.2% y-o-y mainly due to lower cargo throughput as a result of a key customer undertaking major maintenance.
Correspondingly, pre-tax profit decreased by 22.1% y-o-y.
Meanwhile, revenue from the investment and others segment was up due to higher revenue generated by the infrastructure connectivity business. However, IJM posted pre-tax losses in 3Q26 for this segment mainly due to lower investment income and unfavourable foreign exchange movements.
IJM expected the construction division to record a better performance for the financial year 2026 ending March 31 (FY26), on the back of a strong order book of RM15.3bil. The group noted the local property market is showing early signs of softening, driven by weaker consumer sentiment. Following lower sales recorded in FY25 and the first half of FY26, the property division is expected to deliver weaker performance for FY26.
The industry division is expected to sustain its strong three-year momentum, underpinned by a solid order book and the continued roll-out of new data centers and major infrastructure developments.
Further, IJM said the toll division would continue to provide the group with recurrent revenue streams via its existing mature concessions. and the recently secured NPE 2 would provide long term earnings visibility for the division.
Also, the group said the port business is projected to see a softer outlook amid global trade tensions and a slowdown in global steel demand. Additionally, performance for the financial year would be impacted by major maintenance undertaken by a key customer at its plant.
