Megawide Construction Corp. is aiming to achieve a net income of approximately P1.2 billion this year, driven by lower borrowing costs and growth in its construction and real estate businesses. The company's chief finance officer stated that they are on track to meet their plans and programs, with a target of reaching around P1.2 billion in net income for the year and potentially P1.8 billion in 2027. This forecast is based on the company's debt reduction efforts and continued expansion in its construction and real estate segments. The expected growth is anticipated to support earnings and drive the company's success.
The company has made significant progress in reducing its debt, with working capital lines or short-term loans decreasing from P17 billion at the beginning of the year to P10 billion as of June. This reduction is expected to generate interest cost savings of around P480 million, which will contribute to the company's growth this year. The savings, combined with the company's ongoing projects, are expected to drive earnings and support the company's expansion plans.
Megawide Construction Corp. reported an attributable net income of P672.92 million for 2025, representing a 27.95% increase from P525.93 million in 2024. Despite lower revenue, the company's expenses declined during the period, contributing to the increase in net income. In the first quarter, the 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.
The company's 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 the majority of total revenue, with construction operations contributing P3.84 billion and landport and real estate operations generating P137.86 million and P831.13 million, respectively. Megawide's construction order book stood at P48.7 billion, with the company currently building approximately 11,000 housing units under the government's expanded Pambansang Pabahay para sa Pilipino (4PH) Program.
Megawide is working on several high-profile projects, including the Baguio City Integrated Terminal, the South Luzon Integrated Terminal Exchange, and the Cavite Bus Rapid Transit (BRT) System. The company expects to complete the Cavite BRT System this year, with regulatory approvals from the Department of Transportation currently being sought. The project is anticipated to begin partial operations by the end of the year, with point-to-point service from Imus, Cavite to One Ayala targeted to commence shortly after.
The company's shares closed unchanged at P4 each on Wednesday, as investors await further updates on the company's progress and expansion plans. With a strong pipeline of projects and a solid financial foundation, Megawide Construction Corp. is well-positioned for continued growth and success in the construction and real estate industries.
