Megawide Reports 26% Increase in Net Income Amid Middle East Crisis
Megawide Construction Corporation reports a 26% increase in Q1 2026 consolidated net income to P265 million despite global macroeconomic challenges.
Philippine conglomerate Megawide Construction Corporation reported a consolidated net income of P265 million in the first quarter of 2026, according to its quarterly report submitted to the Philippine Stock Exchange.
The company’s Q1 consolidated net income is a 26% increase from the P209 million reported at the same period last year.
Per segment, construction delivered P262 million, and real estate brought in P14 million. Its landport segment “incurred a slight loss” (no exact figures disclosed), according to the company’s May 20, 2026 press release.
Consolidated revenues, meanwhile, grew 14% to P4.81 billion, with improved results recorded across the conglomerate’s portfolio.
Construction remained the biggest contributor to the revenue growth at P3.84 billion, up 5% from 2025. Real estate contributed P831 million, more than double the previous year, while landport stayed steady at P138 million.
The improvement of Megawide’s net income comes amid the ongoing crisis in the Middle East, which has impacted the cost of construction activities.
The company “remains grounded on its strategy and focused on achieving its dual objective of topline growth and balance sheet strengthening to shore up profitability.”
“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,” said Megawide Chairman and CEO Edgar Saavedra in the press release.
“Nonetheless, we are actively assessing the situation and strategically evaluating the developments to keep us on track with our goals.”
Higher energy bills and raw materials, as well as the recent restrictions on global shipping, will likely increase expenses for the construction industry, according to UK-based data provider Building Cost Information Service.
Megawide is projecting to pay back P2.5-3.0 billion from its short-term obligations, in line with the company’s medium-term commitments under its de-levering (the process of reducing debt burden) and long-term financial management program.
The plan to pay down company debt will allow the company to increase its liquidity and free up more debt headroom to support its “long-term growth aspirations,” said Megawide’s Group Chief Financial Officer Jez Dela Cruz.
Megawide has a construction order book (representing the total value of won contracts yet to be completed and billed) of P48.7 billion as of end-March 2026.
The company is in the process of building an estimated 11 thousand socialized housing units under the Philippine national government’s expanded Pambansang Pabahay Para Sa Pilipino.
Megawide’s ongoing projects include the redevelopment of the Cebu City Carbon Market Company, as well as the development of the Baguio City Integrated Terminal, the South Luzon Integrated Terminal Exchange, and the Cavite Bus Rapid Transit System.
Frequently Asked Questions
Megawide reported a consolidated net income of P265 million for Q1 2026, which represents a 26% increase from the P209 million recorded during the same period in 2025.
Consolidated revenues grew by 14% to P4.81 billion, driven by improved performance across the company’s entire portfolio.
The construction segment was the largest driver, bringing in P3.84 billion in revenue and P262 million in net income. The real estate segment experienced significant growth, contributing P831 million to revenue—more than double the previous year—and generating P14 million in net income. Meanwhile, the landport segment maintained a steady revenue of P138 million but incurred a slight, undisclosed net loss.
The ongoing crisis in the Middle East has impacted the cost of construction activities. According to UK-based data provider Building Cost Information Service, the conflict and resulting global shipping restrictions are likely to increase overall industry expenses through higher energy bills and raw material costs.
Megawide plans to pay back P2.5-3.0 billion of its short-term obligations. This move aligns with the company’s medium-term commitments under its de-levering debt reduction program and long-term financial management strategy, which aims to increase liquidity and free up more debt headroom for future growth.
