KUCHING: Ibraco Bhd has more than doubled its group net profit to about RM57.3 million in the first nine months of 2025 (9m2025) from RM26.8 million a year ago, riding on the strong performance of both property development and construction business.
The earnings growth was in tandem with expansion in group revenue to RM579.4 million versus RM326.4 million in 9m2024 or up by a hefty RM253 million. The increased revenue includes RM21.96 million in compensation of land resumed by the government under the Land Code.
This lifted the company’s earnings per share to 10.49sen from 4.91sen.
In 9m2025, the construction works segment posted sharply higher revenue of RM317.5 million (9m2024:RM134.5 million), driving its pre-tax profit to about RM41 million (RM20.5 million).
The property development segment generated significantly higher sales of RM226.9 million (RM164.8 million), bolstering its pre-tax profit to RM46.4 million (RM19.7 million).
However, these improved earnings were partially offset by the widening loss of the manufacturing segment amounting to RM5.66 million (-RM27,000) despite achieving higher revenue of RM12.4 million (RM7.6 million).
The quarry operation segment improved its pre-tax profit to RM520,000 (RM130,000) as sales increased to RM14.8 million (RM12.5 million).
In third quarter to September 30, 2025 (3Q2025), Ibraco posted lower group net profit of RM13.2 million (3Q2024:RM15.3 million) although its revenue jumped by RM50.5 million to RM202.3 million (RM151.8 million).
The property development segment pre-tax profit ticked up to RM13.2 million (3Q2024:RM8.44 million) as revenue climbed to RM86.2 million (RM70.2 million) whereas the construction works segment reported flat pre-tax profit of RM14.3 million (RM14.33 million) despite its revenue shot up to RM104.1 million (RM71.1 million).
The manufacturing segment pre-tax loss worsened to RM1.88 million (-RM32,000) but its revenue improved significantly to RM5.03 million (RM2.76 million).
The quarry operation segment reported lower pre-tax profit of RM67,000 (RM138,000) in line with lower revenue of RM4.35 million (RM5.36 million).
The others segment performed better as shown by its increased pre-tax profit to RM954,000 (RM556,000) on marginal higher sales of RM2.66 million (RM2.34 million).
The 3Q2025 financial results came in weaker as compared to the immediate preceding quarter (2Q2025) when group after-tax profit was sharply higher at RM30.5 million (3Q2025:RM13.24 million) even though revenue was lower at RM193.1 million (RM202.3 million). In 2Q2025,the company received the land compensation money from the government.
As at September 30, 2025, Ibraco group’s unbilled sales was RM359.9 million, and its outstanding order book stood at RM794.2 million.
Currently, the group’s property development centred in flagship The NorthBank where the group had recently entered into a strategic collaboration with Health Management International Pte Ltd (HMI) to develop Regency Specialist Hospital Kuching. The proposed 300-bed smart tertiary hospital is expected to commence operations in 2029.
Ibraco said its new major development — Arden City, a 76-acre township in Kota Samarahan — is progressing on schedule. The project comprises a diverse mix of commercial hubs, office spaces, residential units and community facilities.
In Peninsular Malaysia, Ibraco is currently implementing a high-rise condominium project called Residensi NewUrban in Petaling Jaya, which will have 922 units of apartments.
From residential development, the group has expanded into the light industrial sector via the development of industrial spaces for the small and medium-sized enterprises, logistics providers and light manufacturers.
On construction, Ibraco said its on-going projects include the construction of part of Sarawak’s Second Trunk Road in Kota Samarahan Division, and the infrastructure works from Rembus to Sututong for Kuching Urban Transportation System.
“The group continues to actively bid for the government’s construction and infrastructure projects to strengthen its source of income amidst the current (soft) property market sentiment,” it said.
The group has also expanded into the building and construction value chain to support the group’s realty development and construction projects. It now operates a ready-mixed concrete plant with an annual capacity of 120,000 tonnes, an asphalt mixing plant, and a mild steel cement-lined pipe manufacturing plant with an annual capacity of 30,000 tomes.
Ibraco’s second quarry reserve located at Gunung Sinmajau is expected to be operational this year. Its first quarry plant at Pulau Salak produces aggregates of granite with an annual capacity of 600,000 tonnes.
As at September 30, 2025, Ibraco group’s total loans and borrowings had increased by RM80.9 million to RM506.7 million from RM425.8 million a year ago.
