Megawide targets higher 2026 profit at P1.2B

MEGAWIDE Construction Corp. is targeting a net income of about P1.2 billion this year as lower borrowing costs from debt reduction and growth in its construction and real estate businesses are expected to support earnings, its chief finance officer said on Wednesday.

“We are generally on track in terms of our plans and programs… We are looking to reach around P1.2 billion in net income for the year and possibly P1.8 billion in 2027,” Chief Finance Officer Jez G. Dela Cruz said during the company’s annual stockholders’ meeting.

Mr. Dela Cruz said the company expects its debt reduction efforts and continued growth in its construction and real estate segments to support earnings.

“From P17 billion in working capital lines or short-term loans in the beginning of the year, we are now down to about P10 billion as of June, and that generates about P480 million in terms of interest costs savings alone,” he said, adding that the savings, together with Megawide’s ongoing projects, are expected to drive growth this year.

Megawide reported attributable net income of P672.92 million for 2025, up 27.95% from P525.93 million in 2024 despite lower revenue, as expenses declined during the period.

For the first quarter, the listed engineering and construction company posted a 24% increase in attributable net income to P265.35 million, driven by stronger real estate operations and sustained performance in its construction business.

Gross revenue for the January-to-March period rose 16.4% to P5.04 billion from P4.33 billion a year earlier.

Revenue from operations accounted for 95.44% of total revenue at P4.81 billion. Construction operations contributed P3.84 billion, while landport and real estate operations generated P137.86 million and P831.13 million, respectively.

Megawide’s construction order book stood at P48.7 billion. The company is also building about 11,000 housing units under the government’s expanded Pambansang Pabahay para sa Pilipino (4PH) Program.

Its ongoing projects include the Baguio City Integrated Terminal, the South Luzon Integrated Terminal Exchange, and the Cavite Bus Rapid Transit (BRT) System.

Megawide expects to complete the Cavite BRT System this year.

“Right now, the infrastructure is still being built. We are targeting, hopefully before the end of the year for it to be completed. We are currently seeking regulatory approvals from the Department of Transportation to move forward,” Megawide Chief Business Development Officer Jaime Raphael C. Feliciano said.

Earlier this year, Megawide said it was targeting the start of partial operations of the P1.87-billion Cavite BRT project by May.

The company had also said the full BRT system is expected to be completed this year, with point-to-point (P2P) service from Imus, Cavite to One Ayala targeted to begin by May.

On Wednesday, shares of Megawide Construction Corp. closed unchanged at P4 each. — Ashley Erika O. Jose