GAMUDA BHD (GAMUDA)

Gamuda Berhad: Malaysia's Infrastructure Giant Goes Global

Founded in 1976, Gamuda Berhad has undergone one of the most compelling corporate transformations in Malaysian capital market history. What began as a domestic infrastructure contractor — building tunnels, highways, and rail networks in Malaysia — has evolved into a diversified multinational infrastructure and property group with an outstanding orderbook of RM44-45.5 billion, arguably a record for any Malaysian construction company.

The story of Gamuda is not merely about size. It is about strategic discipline: a deliberate pivot away from low-growth highway concessions toward high-value construction contracts in developed markets (Australia, Taiwan), coupled with capturing the Vietnam property boom. The result is a company that today trades at a premium valuation — and, based on its forward earnings trajectory, may still have meaningful upside.

Three Business Segments

Engineering & Construction: A Three-Market Machine

Malaysia: The domestic construction pipeline is robust. Beyond the pending MRT3 (Klang Valley Circle Line) award — which could add RM5-10B to the orderbook — Gamuda is now a key player in Malaysia's data center construction boom. A RM1.72 billion contract from a US technology giant for a data center facility in Port Dickson marks Gamuda's entry into digital infrastructure — a structural growth theme that extends well beyond traditional civil engineering.

Australia: Gamuda's most transformative international venture. The group now holds over RM11 billion in Australian contracts, anchored by its involvement in the Sydney Metro West project (valued at approximately AUD2.7 billion). Australia's infrastructure investment cycle remains strong, driven by government commitments to public transport and energy transition — including battery storage projects where Gamuda has secured new wins.

Taiwan: Gamuda secured its 10th contract in Taiwan as recently as May 2026 — a RM3.3 billion Kaohsiung MRT project with a 7.3-year completion timeline. Taiwan's urban rail expansion program provides a multi-year revenue runway, and Gamuda's track record there is establishing a strong brand for future bids.

Property: Vietnam as the Growth Engine

Vietnam is Gamuda's most exciting growth story outside of construction. With 8 active projects and a gross development value (GDV) pipeline of RM17.4 billion, Gamuda is well-positioned to benefit from Vietnam's rapidly expanding middle class and urbanisation. The flagship Eaton Park project, with a GDV of RM3.3 billion, is already 95% sold. Total group unbilled property sales stand at a record RM8 billion — providing exceptional earnings visibility over the next 2-3 years.

Record Orderbook: RM44-45.5 Billion

Gamuda's outstanding orderbook stands at RM44-45.5 billion as of mid-2026, the highest in its history. The group secured a record RM22 billion in new contracts during FY2025. Management has guided for RM50-55 billion by end-2026 — implying further contract wins are in the pipeline. The scale of this orderbook means that Gamuda's revenue is effectively locked in for the next 4-5 years, providing unusual earnings certainty for a construction company.

FY26 was a record revenue year for Gamuda: RM18.33 billion (+15% from RM15.97 billion). Net profit attributable to shareholders was RM1.052 billion (+5%) with a net margin of about 5.7%, slightly thinner because revenue grew faster than profit. Both revenue and profit are at all-time highs.

Sources: quarterly database (Q1-Q2 FY26 and FY25), The Star, The Edge, Business Today, Malay Mail (29-30 Sep 2026). * Q3 FY26 is derived from the full-year figure less the other three quarters; the quarterly database does not yet hold Q3 and Q4 FY26.

Segments

• Construction: earnings RM741.6m (+19%). Domestic +49% to RM461m (data centre driven); the remaining ~RM281m from overseas (derived) was lower as some Australian projects completed.
• Property: unbilled sales RM7.6bn; the fourth quarter was weak in Malaysia, while Vietnam (Eaton Park nearly sold out) and Singapore are the FY27 drivers.

Balance Sheet

Net gearing is 72%, slightly above management's 70% target. Operating cash flow was almost RM800m and capex was funded internally. Management expects gearing to ease next year.

Gamuda declared a dividend of 10 sen per share for FY26, unchanged from FY25. No dividend was declared for the fourth quarter. At RM5.18 the dividend yield is ~1.9%. The payout ratio is ~56% of EPS of about 17.8 sen.

Gamuda is a growth stock, not an income stock. The dividend is flat despite record profit because capital is needed to support the RM61bn order book.