Gamuda Bhd has secured a RM1.8 billion design-and-construct contract to upgrade Elizabeth Drive and Mamre Road in New South Wales, Australia, reinforcing its momentum in replenishing its order book. The contract was awarded to Gamuda’s Australian engineering and construction subsidiary, Gamuda Engineering Pty Ltd, in partnership with BMD Construction Pty Ltd, its 50% joint venture partner.
This latest win brings Gamuda’s total new job wins to RM10.2 billion within the first two months of its financial year ending June 30, 2027 (FY27). Analysts noted that the expanded order book has heightened Gamuda’s unbilled construction backlog to RM62.5 billion, which is approximately five times the company’s FY25 construction revenue. This backlog provides earnings visibility for at least the next three to four years.
The project, expected to generate around RM45.4 million in pre-tax profit over its duration, is part of Gamuda’s continued involvement in road infrastructure within New South Wales. It marks the company’s fourth road-related contract in the state, alongside the Coffs Harbour Bypass, M1 Pacific Motorway Extension (Black Hill to Tomago), and Richmond Road-M7 Upgrade. The contract stems from a recurring client, Transport for New South Wales, which further solidifies Gamuda’s standing in regional road and rail infrastructure development.
Research firms have projected that Gamuda’s outstanding construction order book could reach between RM55 billion and RM62 billion by the end of 2026, depending on various assumptions about monthly order book consumption rates. One analyst estimated a monthly burn rate of RM1 billion to RM1.4 billion, with the firm expected to exceed its RM50 billion target for the year-end by as much as 20%.
Looking ahead, analysts foresee additional opportunities for order book replenishment across multiple markets. Potential projects could include data center developments in Malaysia, renewable energy initiatives in Australia — particularly solar engineering, procurement, and construction contracts — as well as railway infrastructure tenders in Taiwan. Specific projects mentioned include the Northern Perak Water Supply Scheme in Malaysia, the Mortlake Energy Hub in Australia, and integrated station developments in Sydney for which Gamuda has been shortlisted.
The ongoing rapid development of Western Sydney, driven in part by the forthcoming Western Sydney International Airport, is expected to sustain infrastructure demand, especially for road construction and upgrades. The Elizabeth Drive and Mamre Road contract is part of a broader package of five Western Sydney road projects totaling nearly A$3 billion, jointly funded by the Australian federal and New South Wales governments. Analysts note that this contract strengthens Gamuda’s position as a leading tier-one contractor in the Australian market.
Financially, despite the recent contract win, most analysts have maintained their earnings forecasts and target prices for Gamuda, suggesting the impact of the new contracts is already factored into current estimates. Target prices among analysts range from RM5.27 to RM6.20. One research firm has shifted focus toward Gamuda’s earnings delivery, projecting a core net profit of RM376 million for the fourth quarter ending June 30, 2026, representing a 13% year-on-year increase and a 60% rise compared to the previous quarter. Gamuda is scheduled to announce its quarterly results on September 29.
Additional upside potential has been identified through renewable energy projects, including a proposed 1.5-gigawatt solar and battery storage system in partnership with Petroliam Nasional Bhd’s clean energy arm, which could represent approximately RM6 billion in engineering, procurement, and construction works for Gamuda. This prospect is supported by the acceleration package under the Corporate Renewable Energy Supply Scheme, which may enhance project viability.