Upbeat outlook for Gamuda

By the Editorial Team · Thursday, October 1, 2026

Gamuda Bhd reported record revenue and a robust RM61.2 billion order book, driving its share price to a nine-month high amid strong project execution in Malaysia and expanding contracts in Australia. Analysts expect continued contract wins and an order book growth to nearly RM70 billion by FY27, supported by a significant tender pipeline across multiple countries and early project completions boosting earnings forecasts.

Shares of Gamuda Bhd surged to a near nine-month high as the construction and engineering firm announced record revenue and an expanding portfolio of major contracts domestically and internationally, with Australia emerging as a significant growth market. The stock closed at RM5.18, with trading volume exceeding 87 million shares, reflecting increased investor confidence.

Analysts maintain a positive outlook on Gamuda’s earnings prospects, underscored by a record order book valued at RM61.2 billion as the company enters financial year 2027 (FY27). Approximately 75% of these projects remain in mobilisation or early execution phases, indicating that a substantial portion of this backlog has yet to translate into revenue. Nearly 90% of projected FY27 revenue is already secured by the current order book, while peak project execution is expected to occur in the coming months.

MBSB Research anticipates continued strong contract replenishment for FY27, projecting new wins between RM30 billion and RM35 billion. This estimate is supported by a robust tender pipeline in Australia alone, valued at A$15 billion (around RM44 billion). The research firm suggested that Gamuda’s order book could remain above RM60 billion despite accelerated project execution and possibly approach RM70 billion within the next year.

TA Research echoed this optimism, indicating that Gamuda is on track to meet its internal target of an unbilled order book of RM60 billion by the end of 2026. Based on an estimated order book burn rate of RM4 billion to RM5 billion over the remaining three months of the year, the company would need to secure an additional RM2.8 billion to RM3.8 billion in new contracts to achieve this. TA Research cited a sizeable tender pipeline exceeding RM50 billion across Malaysia, Australia, Singapore, and Taiwan as a key factor supporting this outlook.

Financial results for FY26 showed a solid performance, with core net earnings of RM1.05 billion, roughly in line with market expectations. Year-on-year revenue rose 16.5%, mainly driven by stronger progress billings from the construction segment, fueled by faster order book execution both domestically and abroad. However, revenue growth was partially offset by weaker contributions from the property development division. Core net profit increased at a more modest pace of 6.8%, impacted by a higher effective tax rate.

On a quarterly basis, revenue and core profit before tax improved by 30.1% and 28.3%, respectively, supported by increased contributions and better profit margins in both construction and property segments.

Following the release of FY26 results, CGS International Research revised its earnings per share forecasts for FY27 and FY28 upward by 1% to 2% and raised its target price to RM6.40 per share. The firm noted that earlier-than-expected completion of three projects in New South Wales could contribute to upside earnings, with incentives linked to early delivery. In Malaysia, upcoming opportunities include an interstate water transfer project from Perak to Penang and new data center developments beyond Pearl Computing. Additionally, CGS International highlighted a tripling in tender volume for Gamuda Engineering Australia to A$15 billion, further underpinning growth prospects.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.