Tycoon Edgar Saavedra’s Megawide Construction Corp. grew 2025 earnings by 24 percent to P669 million as the builder tightened costs, expanded its property business, and pushed deeper into transport and social infrastructure projects.
Revenue fell 20 percent to P17.7 billion from P22.1 billion in 2024 as major projects in Megawide’s construction portfolio entered their winding-down phase, though the segment still remained the company’s biggest business contributor at P14.7 billion.
“Our operational blueprint always bears contingencies to ensure we weather short-term disruptions,” said Saavedra, the chair and CEO of Megawide.
Even with lower revenues, consolidated gross profit climbed 23 percent to P3.89 billion as margins sharply improved to 22 percent from 14 percent a year earlier due to better cost management and favorable project variations.
Property and terminals gain momentum
Megawide’s property arm, PH1 World Developers, emerged as the fastest-growing business after revenues surged 230 percent to P2.35 billion as higher-value residential projects moved closer to completion.
Its transport-oriented developments, led by the Parañaque Integrated Terminal Exchange, generated P518 million in revenues as average daily foot traffic reached around 184,000 by end-2025.
The company said its replenished construction order book of P50 billion, equivalent to around two to three years of project burn, should support a revenue recovery beginning in the second half of 2026.
Balance sheet improves amid expansion push
Megawide also accelerated efforts to strengthen its balance sheet, cutting its bank debt-to-equity ratio to 1.54x from 2.08x while reducing net debt leverage to 1.08x from 1.72x.
The company said it had already paid down around P5 billion in short-term loans as of end-March to improve liquidity while continuing to expand its social infrastructure pipeline, including 7,100 housing units under the government’s expanded 4PH program.
