Megawide banks on gov’t, residential spending for 2025 prospects

An expected pickup in residential demand and the government’s continued focus on infrastructure development will likely boost Megawide Construction Corp.’s 2025 prospects.

Tycoon Edgar Saavedra-led Megawide said in a statement sent to the Inquirer last week that it was targeting an “equal share” in its order book among infrastructure projects, commercial developments and residential units.

“Being both in the construction and property development spaces, we have set our sights on these growth areas to spur employment and progress,” Megawide said.

READ: Construction projects bolster Megawide profit

The company, which is heavily engaged in infrastructure, likewise cited the government’s P1.54-trillion budget allocation for infrastructure-related projects as among the reasons for its optimism.

Megawide pointed out that appropriations for infrastructure had been increasing steadily since 2020.

Data from the Department of Budget and Management showed that infrastructure spending grew at a slower pace in October—2.6 percent to P110 billion versus 16.9 percent in September—as the onslaught of several typhoons slowed overall progress.

Still, the agency said the government was on track to reach by year-end its outlay target, which represents 5.8 percent of gross domestic product.

Most of Megawide’s major projects are partnerships with the national government, including the Metro Manila Subway System and the Malolos-Clark Railway project.

“In the next two to three years, we expect to build on this order book as the economy pushes forward toward a stronger growth trajectory,” Megawide said.

On the commercial side, the company is building the Westside City Resorts Complex, another casino that will rise within Entertainment City in Parañaque.

The company also acquired PH1 World Developers from affiliate Citicore Holdings Investments Inc. last year to begin its entry into the real estate market.

Through PH1, Megawide is developing horizontal residential projects in the provinces of Bulacan and Cavite.

In the first nine months of the year, Megawide secured eight new contracts worth P8.91 billion, bringing its order backlog to P42.6 billion as of end-September. This represents up to three years of revenues, according to the company.

Megawide, which also has renewable energy interests through the Citicore Group, booked a 69-percent surge in earnings to P562 million during the January to September period.

This was due mostly to gains from its infrastructure projects that likewise lifted its top line by 7.2 percent to P16.3 billion. INQ