Engineering and infrastructure firm Megawide Construction Corporation is setting a P1.8 billion capital expenditure budget for 2025, an increase of 50 percent over the estimated P1.2 billion it spent last year.
In an interview, Megawide Chairman Edgar Saavedra said this year’s capex will be allocated mainly for the expansion of its real estate subsidiary as well as its construction business and its precast and construction solutions unit.
He noted that the higher capital spending this year could help the company drive its revenue growth of 20 percent to 30 percent this year on the back of its the construction and real estate operations.
While declining to provide a target for net earnings this year, Saavedra expressed optimism that Megawide will outpace its sales growth in 2024.
He said that the company’s real estate arm PH1 World Developers is focusing on the P3.5 million and below housing segment to complement its middle-income housing ventures that is currently facing headwinds due to excess market supply.
Saavedra noted that PH1 broke ground on a mid-rise condominium development in Imus City in Cavite, last year with similar projects set for 2025. He expressed optimism on the demand for P2.5 million-priced units moving forward, which he said PH1 World is targeting.
Meanwhile, the company’s landport business, the Paranaque Integrated Terminal Exchange (PITX), continues to see increasing foot traffic and occupancy of its leasing spaces.
On the other hand, Megawide’s construction business is expected to steadily grow with its order book currently at P42.6 billion as of end-September — equivalent to two to three years’ work.
Saavedra said the construction business is expected to have better topline and bottomline this year as problematic projects from the Covid-19 pandemic period are completed.
Looking ahead, he said Megawide is eyeing opportunities in the government’s infrastructure pipeline, particularly airport projects.