KUALA LUMPUR (Dec 17): Gamuda Bhd (KL:GAMUDA) said on Wednesday its joint venture has secured a construction contract worth close to RM2.7 billion in Australia.

The 50:50 joint venture with Samsung C&T Corporation will be working on the Marinus Link undersea cable project, covering civil, structural, and electrical infrastructure, Gamuda said in an exchange filing. The contract is expected to be completed within five years.

“Once delivered, Marinus Link will strengthen Australia’s renewable energy infrastructure by enabling greater connection between Tasmania and Victoria,” Gamuda said.

The contract is the final major piece of the first stage of Marinus Link that will connect northwest Tasmania to Victoria’s Latrobe Valley with undersea and underground cables and stations.

Marinus Link is jointly owned by the Commonwealth of Australia, the Victorian government and the Tasmanian government.

Gamuda’s portion of the revenue is A$497 million (RM1.34 billion) and the company expects to begin on-site works in early 2026, the company added.

Apart from high-voltage direct current, Marinus Link will also carry fibre-optic cables as well as other communications infrastructure and converter stations along 255km of subsea cables across Bass Strait and 90km of underground cables in Victoria.

The project has a planned capacity of 1,500 megawatts — about three times that of the existing Basslink interconnector.

The new contract underscores Australia’s role as a key growth catalyst for Gamuda. At its latest briefing with analysts, the group had reiterated its ambition to double engineering revenue from RM12.5 billion in FY2025 to RM25 billion by FY2028, according to BIMB Securities.

It noted that in FY2025, Gamuda's wholly owned Gamuda Engineering Australia (GEA) and Downer Transfield Infrastructure (DTI) generated a combined revenue of A$2.5 billion (RM7 billion), representing 44% of Gamuda's turnover, alongside an estimated A$3 billion (about RM8.4 billion) order book (22% of turnover).  

To meet the group's FY2028 targets, both units will need to double their combined revenue to A$5 billion (RM14 billion) and expand their combined order book to A$8 billion (RM22 billion).

Delivering these milestones underpins Gamuda’s broader aspiration to double its net profit from RM1 billion in FY2025 to RM2 billion in FY2028, with Australia contributing materially to the uplift, BIMB said.

Renewables remain the most compelling growth engine in Australia, with projects spanning solar and battery developments, pump hydro schemes, and a substantial pipeline of transmission works, it said.

Project sizes have also scaled up significantly, with utility-scale developments now ranging between A$2–3 billion (RM5.6–8.4 billion), enlarging the addressable market.

Gamuda expects renewables to drive growth over the next decade, BIMB said, supported by the Federal Capacity Investment Scheme, years of underinvestment in Australia’s energy system, and strong capital deployment from superannuation funds seeking long-term Net Zero-aligned assets.

BIMB also noted that Gamuda's margins in Australia have improved meaningfully compared to when it first entered the country in 2015. While traditional transport and civil projects continue to deliver 8–9% pretax margins, renewables and specialist packages are approaching 10% or higher.

A progressive margin uplift is anticipated as higher-margin renewables and transmission packages move into full execution, it added.

While the group's overall Australia pretax margins may not reach Malaysia's levels (8–12%), the operations provide scale, diversification, and steady earnings growth critical to Gamuda’s long-term expansion, BIMB added.

Gamuda shares closed 10 sen or 2.1% higher at RM4.87 on Wednesday, valuing the group at RM28.7 billion. Year-to-date, the stock has gained 2.7%.