Megawide H1 earnings eased as projects wind down

More projects nearing completion, which usually translates to lower revenues because of less activity, resulted in flat first-semester earnings for Megawide Construction Corp.

In a statement on Wednesday, Megawide said its net income eased down 0.3 percent to P436.4 million.

Also, gross revenues fell by 23.6 percent to P8.78 billion from P11.49 billion.

The company led by tycoon Edgar Saavedra said the decline was because its ongoing projects were already in the “winding down” phase, entailing less construction work and lower revenues.

Still, Megawide chair and CEO Saavedra said they were on track to outpace their 2024 net income. Their real estate business under PH1 World Developers Inc. is gaining momentum.

Megawide ended the semester with a construction order book of P37.7 billion. Still, it is currently bidding for “high-value” projects estimated at P20 billion. If successful, this would raise its year-end order book to more than P50 billion.

The company’s earnings as of end-June represent 81 percent of its full-year profit in 2024.

Broken down, the construction segment’s top line shrunk by 33 percent to P7.3 billion, which accounted for 85 percent of total revenues.

Megawide, whose major construction projects include several public-private partnerships, broke ground for the Caticlan Airport Terminal last month.

Real estate revenues, on the other hand, more than tripled to P1.1 billion thanks to gains from ongoing projects. These include My Enso Lofts, The Hive, Northscapes, Modan Lofts, One Lancaster Park and Lykke Kondo.

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Megawide recently broke ground for four new locations under the government’s Pambansang Pabahay Para sa Pilipino (4PH) program, all in Cavite province.

“Our foray into the 4PH is expected to help address the six million housing backlog and further harness synergies within the group,” Saavedra said.

At the same time, landport operations at Parañaque Integrated Terminal Exchange generated P217 million in revenues. This was up 6 percent due to steady foot traffic and higher spend per passenger.

Commercial occupancy was at 98 percent, while signed contracts for office spaces was at 47 percent.