KUALA LUMPUR, 22 September 2025 — Engineering and infrastructure leader Gamuda Berhad is strengthening its foothold in Malaysia’s construction landscape as a surge in data centre and rail tenders bolsters confidence in the company’s order book outlook. With contracts flowing steadily, analysts believe Gamuda is well on track to reach its ambitious RM40 to RM45 billion outstanding order book target by the end of this year.
Recent wins have already given the company considerable momentum. A RM2.14 billion data centre contract in Selangor has been a major boost, cementing Gamuda’s role as a key player in the fast-expanding digital infrastructure sector. These projects, coupled with rail and related enabling works, are adding resilience and depth to Gamuda’s pipeline at a time when competition in the industry is intensifying.
As of April 2025, Gamuda’s order book stood at RM34.6 billion, excluding unbilled revenue. To achieve its year-end goal, it requires an additional RM8 billion to RM18 billion in fresh contract awards. Industry observers point to several high-potential tenders that could bridge this gap, including large-scale data centre developments in Elmina Business Park, Puncak Alam, and Negeri Sembilan, alongside a RM3–4 billion water supply project in Sabah. Early contractor involvement projects, both in Malaysia and overseas, are also expected to improve visibility for near-term earnings.
The company’s financials continue to reflect solid performance. Net profit for the nine-month period ending April 2025 came in at RM671.1 million, a modest but steady growth of 5% year-on-year. Margins have been supported by a stronger mix of domestic projects, which traditionally deliver better returns than its international ventures, such as those in Australia. Even so, overseas projects provide diversification and exposure to larger-scale infrastructure opportunities. Importantly, the wave of upcoming data centre contracts is expected to be margin-accretive, positioning Gamuda for stronger profitability in the coming quarters.
For investors, the current trajectory suggests a favourable environment for revenue growth as major contracts move past preliminary phases into more active execution. Domestic projects are expected to enhance margins, balancing the lower returns of foreign undertakings, while a steady stream of new tenders is likely to provide additional support. However, investors are also mindful of the risks. Delays in project awards or regulatory approvals could defer revenue recognition, and cost inflation in materials and labour remains a challenge, particularly for overseas projects where currency volatility could affect profitability. The intensifying competition in Malaysia’s data centre construction sector is another factor that may influence pricing and margins.
Despite these risks, Gamuda’s strategic diversification across rail, water, renewable energy, and digital infrastructure projects gives it a strong foundation for sustainable growth. The combination of domestic resilience and overseas exposure provides balance, while execution strength will determine how far the company can leverage the current wave of tenders. If contract flows continue at the current pace, Gamuda is well positioned to close 2025 with one of its strongest order books in recent memory, giving investors a reason to stay engaged with the counter.
