Megawide Construction Corp. grew its consolidated net income by 26 percent to P265 million in the first quarter of the year, driven by higher revenues from its construction and real estate businesses and improved margins despite uncertainties arising from the Middle East crisis.
In a stock exchange filing on Thursday, the company said consolidated revenues rose 14 percent to P4.81 billion during the January-to-March period.
Construction remained the biggest contributor, generating P3.84 billion in revenues, up 5 percent year-on-year, while real estate revenues more than doubled to P831 million. Landport revenues were steady at P138 million.
The company also posted stronger profitability, with consolidated gross margin improving to 24 percent from 22 percent a year earlier. Net margin rose to 6 percent from 5 percent, while EBITDA margin was steady at 25 percent.
Construction contributed P262 million in earnings during the quarter, while the real estate segment added P14 million. The landport business posted a slight loss.
“Our results in the first three months are consistent with our back-end target for the year. While we sustained a healthy performance early on, we have yet to quantify the impact of the Middle East War and a newly replenished construction order book in the coming months.
Nonetheless, we are actively assessing the situation and strategically evaluating the developments to keep us on track with our goals,” Megawide chairman and CEO Edgar Saavedra said.
The company said it remains focused on growing revenues while strengthening its balance sheet amid external risks.
“The other side of our value creation strategy is boosting our financial position to ease the debt servicing burden and provide financial flexibility.
Already, we have pared down almost Php6.0 billion of our short-term debt in the first quarter alone, which should translate to an estimated interest cost savings of around P250-300 million for the year based on our average cost of debt,” Saavedra said.
Megawide’s bank debt-to-equity ratio improved to 1.1x as of end-March 2026 from 1.54x at end-December 2025, while its net debt-to-equity ratio declined to 0.8x from 1.1x.
The company also plans to cut another P2.5 billion to P3.0 billion in short-term debt for the rest of the year to improve liquidity and support long-term growth.
As of end-March, Megawide’s construction order book stood at P48.7 billion.
The company is currently building around 11,000 socialized housing units under the government’s expanded 4PH program and pursuing transport-oriented projects including the Baguio City Integrated Terminal, the South Luzon Integrated Terminal Exchange, and the Cavite Bus Rapid Transit System.