Megawide’s debt drop fuels cash flow, growth prospects

Megawide Construction Corp. kicked off the year with stronger finances, reporting a substantial drop in debt that, combined with a robust P50-billion order book and fewer preferred shares, could unlock new cash flow opportunities.

“Already, we see substantial improvement in our debt levels this first quarter of 2026 and, combined with a healthy order book and reduction in preferred shares, can free up incremental cash flows. 

This will allow us to explore a shift in our dividend strategy to tap a broader shareholder base,” Megawide Chairman and CEO Edgar Saavedra said in a report on Wednesday.

The company closed 2025 with a P50.0-billion order book, up 15 percent from a year earlier, underpinned by residential and office projects, infrastructure work, and the government-backed expanded Pambansang Pabahay Para sa Pilipino (4PH) program.

Residential developments made up 35 percent of the order book, offices and commercial projects 28 percent, infrastructure 15 percent, and the 4PH program 23 percent. Nearly half of last year’s P23.4 billion in new contracts came from 4PH projects – Avesta, JAB, and Jenara Residences in Cavite – totaling P10.7 billion. 

Other significant deals included Megaworld’s Uptown Modern and One Portwood worth P11 billion, Caticlan Airport’s new passenger terminal building at P1.6 billion, and solar power plants in Bataan and Batangas via affiliate Citicore Power Inc., totaling P270 million.

To support the 4PH pipeline, Megawide plans to expand its precast facility next year, aiming to smooth out construction’s cyclical swings while speeding up modern housing delivery.