Saavedra-led Megawide Construction Corp., an engineering firm also engaged in the infrastructure and housing businesses, reported a 24 percent growth in net income to ₱669 million in 2025 from ₱538 million in 2024 on the back of higher construction margins and stronger real estate sales.

In a disclosure to the Philippine Stock Exchange, the firm said its 2025 earnings is in line with its target of a ₱600 million to ₱700 million bottomline for the year.

“The results are on track with our near to medium-term targets, assuming the impact of the Middle East crisis will not be prolonged and disruptive,” said Megawide Chairman and CEO Edgar Saavedra

He added that, “Nevertheless, we remain grounded on the essentials, such as housing, transport, and other social infrastructure, to maintain a cycle-resilient and stable portfolio.”

Consolidated revenues were 19.9 percent lower at ₱17.7 billion last year against ₱22.1 billion in 2024, due to the winding down phase of the construction order book – still the Company’s biggest revenue driver at ₱14.7 billion, 30 percent down from ₱21 billionin 2024.

Property development revenue under PH1 World Developers, Inc. surged 230 percent to ₱2.35 billion from ₱711 million as current portfolio steadily increased their construction progress.

Revenue contribution of transport-centric developments (currently the Paranaque Integrated Terminal Exchange) jumped 45.9 percent from ₱355 million to ₱518 million – mostly driven by its commercial leasing, as average foot traffic continued to grow at an average of 184,000 daily as of end-December 2025.

Consolidated gross profit rose 23 percent to ₱3.89 billion as costs were managed more efficiently. Per segment, construction delivered ₱2.92 billion, real estate at ₱691 million, and landport at ₱230 million.

Margin-wise, this translated to a consolidated level of 22 percent compared with 14 percent the previous year.

The construction segment recorded a gross margin of 20 percent despite lower revenues, up from 13 percent in 2024, due to timing difference between revenue recognized and costs incurred related to variation orders of some major projects.

With a replenished order book of ₱50 billion at the end of 2025 – with an estimated burn of two to three years – revenues are also expected to ramp up steadily starting the second half of this year.

Real estate margins, on the other hand, normalized to 29 percent as completion of higher value projects steadily increased. New ventures, such as the entry into the government’s expanded 4PH program, as well as fresh commercial contracts and existing projects are expected to contribute more significantly to consolidated performance despite ongoing global geopolitical issues.

“Our operational blueprint always bears contingencies to ensure we weather short-term disruptions. An early, practical and favorable resolution to the conflict will be welcome and should this materialize, our back-ended net income target for the year will be within reach,” noted Saavedra.

In terms of balance sheet health, the company recorded an improved bank debt-to-equity (D-E) ratio of 1.54x as of end-December 2025 versus 2.08 times as at end-December 2024, with the net D-E ratio likewise easing to 1.08x versus 1.72 times, respectively.

“We continue to optimize our capital structure. As of end-March this year, we have paid down around ₱5.0 billion worth of short-term loans to further improve our liquidity and leverage,” said Megawide Group Chief Financial Officer Jez dela Cruz.

Megawide is currently constructing around 7,100 units of socialized housing units under the government’s expanded 4PH program, with an aspiration to launch 100,000 units over the next five years to anchor its social infrastructure platform – together with public market through the Carbon Market Redevelopment.

The company is also developing the Baguio City Integrated Terminal, the South Luzon Integrated Terminal Exchange, and the Cavite Bus Rapid Transit System to boost its TCD portfolio. (James A. Loyola)