KUALA LUMPUR (May 29): IJM Corp Bhd ended its financial year ended March 31, 2026 (FY2026) with stronger revenue growth and a robust construction pipeline, although several non-recurring and non-cash items pushed the group into a loss for the fourth quarter.
For the fourth quarter ended March 31, 2026 (4QFY2026), IJM’s revenue increased 4.2% year-on-year to RM1.87 billion from RM1.79 billion, supported by contributions across its key business divisions. Full-year revenue climbed 10% to RM6.88 billion, compared with RM6.25 billion recorded in FY2025.
However, the group reported a loss before tax of RM56.18 million for the quarter, reversing from a profit before tax of RM257.38 million a year earlier. The weaker performance was mainly due to higher unfavourable foreign exchange differences, provisions and impairment charges recognised during the quarter. These included impairment of unsold inventories and maintenance provisions related to its toll operations.
After tax, IJM posted a net loss of RM190.27 million for 4QFY2026, compared with a net profit of RM132.02 million in the corresponding quarter last year.
For the full financial year, the group remained marginally profitable, registering a net profit attributable to shareholders of RM3.25 million versus RM403.38 million in FY2025. The decline was largely attributed to non-recurring items and foreign exchange movements recognised during the current financial year.
Despite the softer earnings performance, IJM proposed a second interim single-tier dividend of five sen per share together with a special single-tier dividend of one sen per share. This brought total dividends for FY2026 to eight sen per share, unchanged from FY2025.
The dividends will be payable on July 24, 2026. The ex-date has been fixed for June 29, 2026, while the entitlement date is June 30, 2026.
As at March 31, 2026, IJM’s net assets per share stood at RM2.84, slightly lower than RM2.93 recorded a year earlier.
Looking ahead, the group expects its construction division to deliver improved performance in the new financial year, backed by a strong order book of RM14.7 billion, including the group’s share of joint ventures and associates.
Its industry division is also expected to maintain solid momentum, supported by demand from data centre developments, large-scale industrial buildings and infrastructure projects.
Meanwhile, the property division noted early signs of softer market conditions due to weaker consumer sentiment. Nevertheless, the division aims to support sales through responsive pricing strategies, differentiated product offerings and selective land disposals.
The toll division is expected to continue generating stable recurring income, with the recently secured NPE 2 concession providing longer-term earnings visibility. The port business, however, expects a mixed operating environment as a major customer gradually resumes operations amid continuing geopolitical uncertainties affecting global trade.
IJM said that despite macroeconomic and geopolitical challenges, the group remains confident of delivering improved operational performance in the new financial year.
What investors can learn from IJM’s latest results is that headline earnings may sometimes appear weak due to one-off impairments, forex movements and provisioning charges, even when the core business continues to grow operationally. The group’s higher revenue, stable dividend payout and sizeable RM14.7 billion order book suggest that its underlying construction and infrastructure businesses remain resilient.
Investors may also note the growing importance of data centre and industrial-related projects in supporting IJM’s industry division, reflecting broader demand trends within Malaysia’s industrial and infrastructure sectors. At the same time, softer consumer sentiment in the property market highlights ongoing challenges for developers, particularly in residential sales.
Overall, IJM’s results demonstrate how diversified infrastructure and construction groups can experience short-term earnings volatility while still maintaining long-term operational visibility through recurring income assets, concession businesses and a healthy project pipeline.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 30 May 26
Malaysia