Gamuda Berhad’s outstanding order book has reached a record RM62.5 billion following its latest road infrastructure contract win in Australia, strengthening the group’s earnings visibility and overseas construction portfolio, according to Kenanga Investment Bank.
The research house maintained its OUTPERFORM rating on Gamuda with an unchanged target price of RM5.30, viewing the latest contract positively as the group continues to secure major infrastructure projects across international markets.
Gamuda announced on Monday that Transport for New South Wales had awarded the Elizabeth Drive Upgrade – Mamre Road Upgrade Stage 2 project to a 50:50 joint venture between Gamuda Engineering Australia and BMD Constructions.
The broader project is valued at approximately AUD2 billion, jointly funded by the Australian and New South Wales governments, while the joint venture’s contract portion is worth AUD624 million, or approximately RM1.8 billion.
Gamuda’s 50% share translates into expected revenue of AUD312 million, equivalent to approximately RM908 million.
The project involves upgrading 4.5km of Elizabeth Drive and 3km of Mamre Road in Western Sydney, with construction commencing immediately and targeted for completion by 2030.
Kenanga said the latest award has lifted Gamuda’s year-to-date contract wins to RM10.2 billion, less than three months into its financial year ending 2027, against the research house’s full-year contract replenishment assumption of RM27 billion.
The new contract includes rise-and-fall provisions that allow for adjustments linked to changes in costs, with an expected profit-before-tax margin of approximately 5%, consistent with Gamuda’s traditional Australian infrastructure projects.
Following the award, Malaysia accounts for 44% of Gamuda’s RM62.5 billion outstanding order book, followed by Australia at 35%.
Kenanga said the enlarged order book provides strong earnings visibility and reinforces the group’s ability to secure major overseas infrastructure contracts.
More Data Centre And Infrastructure Jobs In Pipeline
Looking ahead, Kenanga expects Gamuda to remain actively involved in upcoming infrastructure and data centre tenders.
The group is among the contenders for further contracts at the Springhill data centre campus, having secured all four contracts awarded since April.
In Malaysia, the Northern Perak water project remains another notable opportunity in its construction pipeline.
Regionally, Kenanga sees opportunities for Gamuda to secure another project in Taiwan during the second half of 2026, while the group has also been shortlisted for infrastructure projects in Brisbane and the Northland Corridor Highway in New Zealand.
The research house maintained its construction contract win assumptions of RM22 billion for FY2026 and RM27 billion for FY2027, alongside property sales targets of RM4 billion and RM5 billion, respectively.
Kenanga said Gamuda’s growing overseas presence, exposure to data centre construction and expansion into renewable energy continue to underpin its investment outlook.
Key risks include delays in domestic infrastructure project rollouts, rising construction costs, labour shortages, foreign exchange fluctuations and potential cost overruns or project delays.
The research house maintained its sum-of-the-parts-derived target price of RM5.30, valuing Gamuda’s construction business at 22 times projected calendar year 2027 earnings.
