PETALING JAYA: Gamuda Bhd
is heading into a multi-year earnings growth cycle, supported by its record construction order book, says Apex Securities Research.
As at end-July 2026, Gamuda’s construction order book rose 61% year-on-year to RM61.2bil, ahead of its RM50bil target, after RM35bil of new wins in financial year 2026 (FY26).
A further RM12bil-plus was secured in the first two months of FY27.
“Around 90% of the order book has yet to reach peak execution, with 48% (RM29.6bil) still at the 0% to 10% progress stage, so revenue should step up sharply as projects move into main works.
“We forecast construction revenue of RM21.3bil, RM26.4bil and RM31.5bil for FY27 to FY29, against FY26’s RM14.9bil.”
Another analyst told StarBiz that he remains confident of Gamuda’s long-term growth diversification as the group continues to bag more projects overseas.
“While foreign projects may have lower margins, they will keep supporting Gamuda’s top line,” said the analyst.
Apex Securities Research also noted that Gamuda is not reliant on one market.
The order book is split across Malaysia (43%), Australia (37%), Taiwan (17%) and Singapore (3%).
In FY26, RM18bil of the RM35bil of new wins came from newer sectors such as data centres and renewable energy, alongside traditional rail, road and water works.
Australia’s infrastructure tender volume has tripled to more than A$15bil, and Gamuda Engineering Australia has been selected for early contractor involvement on two packages of Stage 1 of Sydney-Newcastle high-speed rail, a programme of more than A$60bil.
On data centres, Apex Securities Research said such projects carried higher margins than traditional civil works and are a growing part of the order book.
About RM18bil of the RM35bil of FY26 new wins came from newer sectors such as data centres and renewable energy.
As these projects ramp up, they should lift the construction net margin above FY26’s 5%, even as lower-margin overseas jobs take a larger share of revenue.
Beyond construction, the research house noted that Gamuda is building long-dated, visible earnings from the 187.5MW Ulu Padas hydropower project, the Northern Perak water supply scheme and Gamuda Water.
The proposed Corporate Renewable Energy Supply Scheme (Cress) hybrid solar and four-hour battery storage project adds a preliminary 21-year offtake worth more than RM10bil of project revenue.
More than 5GW of renewable projects are under development and construction across Malaysia and Australia, with further engineering, procurement, construction and commissioning opportunities to follow once Cress is awarded.
On the property business, Apex Securities Research said Gamuda targets RM7bil of sales in FY27, more than double FY26, backed by RM9.7bil of launches on recently acquired land, led by Central Park in Hanoi, Chencharu Close in Singapore and Hai Phong.
As Vietnam recognises profit on handover, earnings should step up from FY28, with the larger launch pipeline supporting stronger property earnings thereafter.
