“IJM Corp’s Q4 net profit falls 30% due to one-off credit loss. Construction revenue up 60%, order book at RM7.6b. Dividend declared.“
Kuala Lumpur, 30th May 2025, 12.10pm – IJM Corporation Bhd reported a 29.9% drop in net profit for the fourth quarter ended March 31, 2025 (4QFY2025) to RM128.95 million, weighed down by a RM54 million expected credit loss from its investment in West Coast Expressway (WCE).
The group had recorded a net profit of RM183.91 million in the same period last year, which included a RM67 million fair value gain from WCE Holdings Bhd warrants, boosting its previous-year earnings.
Adjusted Performance Shows Strong Operating Momentum
Excluding one-off items, IJM said pre-tax profit would have jumped 40.8% to RM311.4 million, reflecting underlying strength in its core businesses.
Quarterly revenue rose slightly to RM1.8 billion, compared with RM1.78 billion in 4QFY2024.
Construction and Industrial Divisions Lead Growth
- Construction revenue surged 60.4% year-on-year, backed by progress in ongoing projects and a larger order book.
- The industry division performed well, supported by strong demand, particularly in data centre and infrastructure-related work.
However, the group’s toll division was impacted by the WCE-related credit loss, while its port operations experienced weaker cargo volumes amid global trade headwinds.
Dividend Payout Increased
IJM declared:
- A five sen interim dividend, and
- A one sen special dividend,
bringing its total annual dividend to eight sen per share.
Full-Year Results and Outlook
For the financial year ended March 31, 2025 (FY2025):
- Net profit fell 32.8% to RM403.4 million, from RM600.3 million a year earlier.
- Revenue rose 6.7% to RM6.3 billion, compared with RM5.9 billion in FY2024.
CEO: FY2025 Was a Year of Strategic Progress
Group CEO Datuk Lee Chun Fai described FY2025 as “a year of progress” despite economic challenges. He highlighted:
- Strong growth in the construction division,
- Steady demand in the industry segment, and
- New business wins in data centers, logistics, and the UK market.
The group’s current construction order book stands at RM7.6 billion, with an additional RM3.5 billion secured via a new UK joint venture, boosting its presence and pipeline in international markets.
FY2026 Outlook: Resilient with Focus on Execution
IJM remains optimistic for FY2026, with plans to:
- Deliver its RM7.6billion construction order book,
- Expand data centre development activities,
- Maintain stable contributions from its propertyand toll divisions, and
- Navigate ongoing challenges in its port business, which remains affected by uncertainties in global trade.
Market Snapshot
As of market close on Thursday, IJM’s share price slipped 0.82% to RM2.43, giving the group a market capitalisation of RM8.5 billion. Year to date, the stock has declined 20%.
