Megawide Posts Impressive 26% Revenue Growth, Achieving PHP18.6 Billion For FY2023

Megawide Construction Corporation (Megawide) has kicked off 2024 with a bang, reporting a staggering 26% revenue growth in the fiscal year 2023.

With a strong pipeline of Engineering, Procurement and Construction (EPC) projects and expanding real estate and landport operations, the infrastructure leader is set to continue building a solid foundation for the Philippines' future. I Image: Megawide

The publicly listed engineering and infrastructure powerhouse raked in consolidated revenues totaling PHP18.6 billion, a significant leap from the PHP14.8 billion earned in the previous year.

What's driving this phenomenal growth?

A robust performance from Megawide's construction business, which generated PHP18.1 billion and contributed a whopping 97% to the company's total revenue.

This gain was supplemented by an uptick in landport operations and a strong initial contribution from the company's newly acquired real estate segment, which collectively added an impressive PHP497 million to the revenue pool.

The company’s consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) also showed a dramatic improvement, growing over tenfold to PHP3.60 billion from last year’s PHP353 million.

This extraordinary rebound translated into a consolidated net income from continuing operations of PHP269 million—a complete turnaround from the PHP1.87 billion net loss recorded in the previous year.

Chairman and CEO Edgar Saavedra attributed the remarkable success to consistent progress on existing projects and the expansion of Megawide's external portfolio.

“Our EPC business sustained a robust performance as progress on existing projects went as planned,” Saavedra said. “In addition, our Pre-Cast and Construction (PCS) unit continued to build its external portfolio, helping boost performance from the construction segment.”

Megawide’s EPC segment signed new projects in 2023, including the Hotel 101 in Libis and the Lumbangan Solar Power Plant, bringing the company's total order book to PHP43.1 billion.

Additionally, the PCS unit secured contracts for horizontal infrastructure projects such as the Candaba Viaduct, MRT-7, CP-104 of the Metro Manila Subway, and a data center—worth over PHP2 billion combined.

The company’s landport business, PITX, also surged with increased foot traffic, hitting 200,000 at its peak during the December 2023 holidays.

This uptick in foot traffic led to a busy retail area, with average spending per passenger climbing to PHP40/pax from less than PHP30/pax the previous year. Office leasing attracted more traditional tenants, comprising 57% of signed-up tenants by the end of 2023.

Megawide's real estate segment, PH1 World Developers, Inc. (PH1), contributed PHP149 million since its acquisition in July 2023, with take-up of ongoing and new projects reaching PHP4.6 billion, representing 916 units.

These are expected to translate into increased revenue in the future.

As Megawide celebrates its success, Saavedra emphasizes the need to manage the balance sheet and reduce interest-bearing liabilities. With its two-pronged approach, Megawide is poised to maintain its impressive growth trajectory, continuing to build a brighter future for the Philippines.