IJM Corp Q1 net profit jumps 44pct on stronger construction activity

IJM Corp Bhd reported a significant increase in net profit for the first quarter of FY27, reaching RM137.4 million, a 43.7% rise from RM95.6 million in the same period last year. This growth was driven by stronger performance in the construction and industry divisions. Revenue for Q1 FY27 increased 32.2% to RM2.29 billion, up from RM1.73 billion in Q1 FY26.

The construction division, which contributed RM1.32 billion, saw a 36.2% rise in revenue. Pre-tax profit for the construction division more than doubled to RM73.3 million, thanks to enhanced construction activity, joint venture contributions, and foreign exchange gains. The company's order book stood at RM14.5 billion, with significant projects in data centers, advanced manufacturing, and warehousing facilities.

However, the property division's pre-tax profit fell to RM10.4 million due to reduced foreign exchange gains and lower contributions from associates and joint ventures. The industry division also performed well, with revenue at RM443.8 million and pre-tax profit of RM61.7 million. The toll division experienced an 11.3% decline in revenue, mainly due to the absence of toll compensation following the completion of the NPE toll restructuring and a weaker Indian rupee.

Kuantan Port's revenue dropped 7.2% to RM94.1 million, while pre-tax profit fell 13.6% to RM24.4 million. Despite these challenges, IJM Corp expects operational performance to improve in FY27, backed by its robust construction order book, sustained demand for industry products, and about RM2.2 billion in unbilled property sales.

The group chief executive officer and managing director, Datuk Lee Chun Fai, highlighted the positive start to FY27, noting that higher activity across their construction operations is translating into improved earnings. The company also declared a special dividend of 10 sen per share, payable on Oct 15, 2026.