KUALA LUMPUR (May 28): IJM Corp Bhd (KL:IJM) concluded its fiscal year 2026 with a quarterly net loss — its first quarter in the red since 2008 — weighed down by unrealised foreign exchange (forex) losses and a hefty impairment on unsold inventories that completely offset the group's higher revenue.

This resulted in the construction and infrastructure group recording a net loss of RM173.89 million for the fourth quarter ended March 31, 2026 (4QFY2026), as opposed to a net profit of RM128.95 million in the corresponding quarter a year ago. Revenue grew 4.2% to RM1.87 billion from RM1.79 billion, its bourse filing showed.

During 4QFY2026, the group recorded net forex losses amounting to RM94.7 million, RM121.6 million in impairment on unsold inventory, RM51 million in provision for maintenance costs for a highway in India, and weaker performance from its property and port divisions.

Its construction segment was also weaker year-on-year, again dragged by forex losses.

Despite the quarterly loss, the group declared a total of six sen dividend — comprising a five-sen interim payout and a one sen special dividend — to be paid on July 24. This raised its payout for FY2026 to eight sen per share, on par with FY2025’s.

The loss-making quarter pulled IJM's annual net profit down to RM3.25 million — its weakest showing since FY2008, when it recorded a net loss of RM420.47 million — from RM403.38 million in FY2025. This was despite full-year revenue rising 10% to RM6.88 billion from RM6.25 billion.

The group's property division saw earnings drop amid lower sales and the absence of a one-off land sale revenue recognised in FY2025. Its port division's performance also declined due to lower cargo throughput due to a key customer undertaking major maintenance.

On outlook, IJM said the property market is seeing early signs of softening on weaker consumer sentiment, while the port division is mixed; on one hand it is seeing the progressive resumption of business activities of a major customer is a positive, but prospects are weighed by geopolitical tensions on global trade.

Its construction and industry divisions, meanwhile, are expected to continue their strong performance supported by solid order books, it said.

“Barring the uncertain macroeconomic outlook due to geopolitical tensions, the group is confident that it can deliver an improved operational performance for the new financial year,” it added.

IJM shares ended two sen or 0.93% higher at RM2.17 on Thursday, valuing the group at RM7.92 billion.