Megawide Reported P562 Million Net Income for 9M24, Up 69%

Megawide Construction Corporation recorded P562 million net income in the first nine months of 2024 – 69% higher than the previous year. The performance was driven by higher consolidated revenues at P16.3 billion – complemented by lower costs and expense management – resulting in a 126% growth in operating profit to P1.98 billion and improvement in operating margin to 12% from 6% last year. This also brought consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) to P3.65 billion – 29% higher than the same period in 2023.

The construction segment delivered P15.5 billion and contributed 96% to consolidated revenues, as the business continued to benefit from increased economic activities and the government’s infrastructure build up. “Strong macro-economic growth, coupled with easing interest rates, were supportive of business expansion and bode well for construction. In addition, we are also benefitting from the government’s infrastructure development and renewable energy capacity build-up, which we hope to capitalize on moving forward,” Edgar Saavedra, Megawide President and CEO, explained.

The Company secured eight (8) new contracts during the period amounting to P8.91 billion, six of which were solar power plants of newly-listed affiliate Citicore Renewable Energy Corp. This brought the Company’s order backlog to P42.6 billion as of end-September, representing 2-3 years of revenues.

The manufacturing side of the construction business – representing the pre-cast and construction solutions (PCS) segment – likewise continued to sustain its momentum with significant growth in external sales. During the review period, revenues from PCS more than doubled to P2.80 billion from P1.10 billion last year, driven by robust external sales, which comprised 65% of its revenues from 35% previously.

“Our PCS business is an emerging segment for the Company. We are confident that the wide application of pre-cast products in infrastructure, residential, and commercial developments will be attractive growth areas for our PCS business and the Company overall,” Saavedra added.

Landport operations, on the other hand, delivered revenues of P386 million and contributed 2% to consolidated revenues. This came largely from rental of retail spaces at the terminal area – which was boosted by consistently increasing foot traffic at an average of 136,000 daily in the first nine months of the year – and improvement in office leasing. Occupancy in the terminal further rose to 92% as of end-September while occupancy at the office towers improved to 41%, which were all leased out to traditional tenants, like logistics hubs, government offices, transport services, and travel agencies.

Meanwhile, revenue from PH1 World Developers (PH1) steadily rose to P377 million from P36.5 million last year and contributed 2% to consolidated revenues. This came from ongoing projects My Enso Lofts, The Hive, Modan Lofts, One Lancaster Park, and Northscapes San Jose del Monte, Bulacan.

As of end-September, total reservation sales booked by PH1 already reached P11.8 billion, which are expected to translate to revenues over the next two years as construction progress on these projects accelerate. In addition, unsold inventory worth P11.0 billion – which still excludes projects to be launched early next year – will provide a healthy stock of future sales and revenue.

​Megawide is among the most innovative engineering and infrastructure companies in the Philippines. Publicly listed since 2011, Megawide is the private partner of the Philippine Government for major public infrastructure projects such as the PPP for School Infrastructure Project Phases 1 and 2; the multi-year developments of Mactan-Cebu International Airport and the Parañaque Integrated Terminal Exchange; and the construction of Clark International Airport. In 2012, the company established Megawide Corporate Foundation, Inc., a nonprofit organization focusing on social development projects.