IJM expects better outlook for construction division

PETALING JAYA: IJM Corp Bhd is anticipating its construction division to stage a better performance for the financial year ending March 2025 (FY25), on the back of its order book in hand of RM6bil.

The group said for the year-to-date FY25, the division had secured work amounting to RM2.7bil, namely from data centres, electrical and electronics manufacturing facilities and logistics warehouse projects.

Releasing its results for the third quarter ended December (3Q25) today, IJM Corp saw net profit climb 12.9% year-on-year (y-o-y) to RM113.3mil, on the back of a 4.4% growth in revenue to RM1.54bil.

Cumulatively, over the nine months up to December (9M25), however, net earnings slid 6.9% y-o-y to RM274.4mil, despite a 7.2% increase in revenue to RM4.46bil.

On the lower 9M25 net profit, IJM Corp attributed that to unrealised foreign exchange (forex) losses of RM73.4mil recorded during the period, against forex gains of RM27mil made in the corresponding period a year before.

In addition, it said in a filing to Bursa Malaysia that it had also recognised fair value losses on WCE Holdings Bhd warrants of RM8mil and RM26.5mil in 3Q25 and 9M25, respectively.

Compared to the preceding quarter ended Sept 30, net profit rose 52.7% from RM74.2mil, even though turnover had stayed consistent, principally due to the recognition of profit arising from the sale of a parcel of land in Penang in 3Q25, which was partially negated by lower profit contribution from the group’s other business units.

Turning its attention ahead, the group commented that its property division remains steadfast in its efforts to grow its business given the strategic locations of its properties and the brand premium that it has established.

“Barring the unfavourable foreign exchange effects, the property division is expected to maintain a satisfactory performance for the current financial year on the back of its unbilled sales of about RM1.6bil,” said IJM Corp.

At the same time, the group’s industry division is expecting another year of solid performance on the back of its healthy order book in hand and the promising outlook for industrial buildings, data centres and semiconductor manufacturing facilities.

The toll division, meanwhile, is anticipated to continue to provide the group with recurrent revenue streams via its existing mature concessions whilst its newer highways are undergoing gestation periods before maturity.

On the other hand, IJM Corp commented that its port business is expecting a challenging last quarter in tandem with weaker steel exports.

Overall, it is anticipating to record a satisfactory operational performance for FY25.