KUALA LUMPUR (Sept 29): Gamuda Bhd (KL:GAMUDA) closed its financial year ended July 31, 2026 (FY2026) with a net profit topping RM1 billion for the second straight year, as its construction order book reached a record high.

Full-year net profit stood at RM1.05 billion, up 5% from RM1 billion a year earlier, Gamuda said in a bourse filing on Tuesday. Revenue rose 15% year on year to RM18.3 billion from RM16 billion.

Gamuda said the growth in revenue and net profit was underpinned by stronger contributions from domestic construction projects and high-margin quick-turnaround property projects in Vietnam.

Construction earnings rose 19% to RM741.6 million from RM625.5 million, lifted by a 49% increase in domestic earnings, which partly offset lower overseas contributions as the first batch of Australian projects reached completion.

As at end-July, Gamuda’s construction order book stood at RM61 billion. No dividend was declared for the quarter.

For the three months ended July 31, 2026 (4QFY2026), net profit rose 5% to RM349.7 million from RM332.1 million a year earlier, while revenue increased 19% to RM5.76 billion from RM4.84 billion.

Construction division earnings jumped 49% to RM255.6 million from RM171.8 million, driven by stronger contributions from domestic projects, particularly the data centre segment.

Looking ahead, the group expects next year’s earnings to be driven mainly by domestic construction projects, including hyperscale data centre developments, alongside stronger profit recognition from quick-turnaround property projects, particularly those to be launched in Vietnam and Singapore.

Gamuda said it generated nearly RM800 million in cash from operating activities during the year, allowing it to fund its capital expenditure internally.

The group expects gearing to decline from next year as cash inflows from its record construction order book and RM7.6 billion in unbilled property sales strengthen, particularly from its nearly sold-out Eaton Park project in Vietnam.

According to AskEdge data, the stock is trading at a price-to-earnings (PE) ratio of 28.7 times, which is higher than most of its peers. In comparison, Sunway Construction Group Bhd (KL:SUNCON) trades at a PE of 24.5 times.

Shares of Gamuda rose seven sen, or 1.4%, to settle at RM4.98 on Tuesday, giving the construction group a market capitalisation of RM30.1 billion.