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RAM Ratings maintains positive outlook on Gamuda’s AA3 issue ratings
Published on 15 Jan 2026.
RAM Ratings has affirmed the ratings of the debt programmes under Gamuda Berhad (Gamuda or the Group) and its subsidiaries, while concurrently retaining the positive outlook on the long-term ratings (Table 1). The affirmation and positive outlook continue to reflect Gamuda’s robust business profile as a regional construction and property player, underpinned by strong technical capabilities and project execution, as well as a diversified earnings profile.
Gamuda’s positive outlook is supported by its record-high job wins of RM22 bil in FY Jul 2025, supplemented by RM3 bil in new contracts in 1Q FY Jul 2026. These contracts boosted outstanding order book to a robust RM37 bil as at end-October 2025 (end-July 2024: RM25 bil), providing strong medium-term earnings visibility. Property sales totaled RM4.1 bil in FY Jul 2025 (-18% y-o-y due to weaker domestic sales), with unbilled sales rising to a sizeable RM8 bil (end-July 2024: RM7.7 bil). Overseas operations contributed 64% of revenue in FY Jul 2025, enhancing earnings resilience and diversity.
Gamuda’s revenue (including share of revenue from its joint ventures) and pre-tax profit increased by a respective 11% and 17%, reaching RM16.4 bil and RM1.3 bil in FY Jul 2025, lifted by the domestic construction segment. Looking ahead, Gamuda’s revenue could approach RM30 bil and pre-tax profit could exceed RM2 bil over the next three years, anchored on domestic construction and overseas property projects.
Total debt rose to RM10.3 bil as at end-July 2025 to support business expansion, with gearing at 0.85 times and net gearing at a manageable 0.55 times (end-July 2024: RM8.0 bil, 0.69 times and 0.40 times, respectively). Funds from operations debt coverage (FFODC) remained stable at 0.10 times for FY Jul 2025. Net debt is projected to rise to RM8.5 bil-RM9.4 bil over the next two years from RM7.7 bil (at end-October 2025) – higher than previously expected, with gearing and net gearing to peak at a respective 0.95 time and 0.72 times. Despite the higher leverage, the outlook reflects our expectations of a meaningful recovery in credit metrics in FY Jul 2028, coinciding with significant cash flows from Gamuda’s Vietnamese property projects, which are almost fully sold. FFODC is expected to remain within 0.10-0.14 times – supportive of the positive outlook.
The ratings may be upgraded if Gamuda continues to demonstrate strong ability in managing technical and execution risks for large construction jobs and market risks for key property projects while deleveraging its balance sheet to manageable levels by FY Jul 2028.
The ratings are moderated by execution and demand risks associated with rapid growth, as well as exposure to order book volatility and potential delays in large-scale infrastructure jobs. At its current pace of growth, any further indebtedness would need to be accompanied by meaningful cash flow improvements.
Table 1: Issue ratings for Gamuda’s debt facilities
Analytical contacts
Karin Koh, CFA
(603) 2708 8237
karin@ram.com.my
Thong Mun Wai
(603) 2708 8255
munwai@ram.com.my
Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my
The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.
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Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.
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