Gamuda Secures RM1.71 Billion Hyperscale Data Centre Contract, Signalling Higher Profit Margins in FY27

Introduction

Malaysia’s construction and infrastructure sector has emerged as a primary beneficiary of the global data centre investment wave, as US-headquartered technology multinationals accelerate hyperscale facility deployments across Southeast Asia. Demand for qualified engineering contractors capable of delivering large-scale, mission-critical infrastructure has intensified sharply, pushing project values into the billions and elevating profit expectations for firms with proven execution track records. Reportedly, Gamuda Bhd has positioned itself at the centre of this shift, securing a succession of high-value data centre contracts that analysts say are reshaping the company’s earnings trajectory heading into financial year 2027.

Gamuda Bhd Officially Secures Its First Letter of Award for FY27, Valued at RM1.71 Billion

Gamuda Bhd has officially secured a RM1.71 billion hyperscale data centre construction contract, confirmed as the company’s first letter of award (LOA) for financial year 2027 (FY27). The contract is located at a Port Dickson site owned by a US-headquartered multinational corporation (MNC), marking the second data centre package Gamuda has been awarded at the same site.

Hong Leong Investment Bank Bhd (HLIB), in a research note issued in response to the announcement, stated that the contract structure is consistent with previously secured data centre packages. HLIB states that the project is expected to yield a pre-tax profit (PBT) margin of approximately eight per cent on a cost-plus basis — a margin profile analysts describe as favourable relative to traditional civil infrastructure work.

“Following this award, data centre projects now account for about 10 per cent of its RM54 billion unbilled orderbook,” HLIB noted in its published commentary, underscoring the growing weight of the digital infrastructure segment within Gamuda’s overall contract portfolio.

Data Centre Construction Contracts at Port Dickson Drive Growing Share of Gamuda’s RM54 Billion Unbilled Orderbook

Reportedly, the services at the centre of this announcement involve the construction and delivery of hyperscale data centre facilities, a specialised category of large-scale infrastructure projects commissioned by major technology corporations to house cloud computing and artificial intelligence workloads. Gamuda’s involvement at the Port Dickson site now spans two separate contract packages, both awarded by the same US-headquartered MNC client.

According to HLIB’s research note, data centre-related contracts collectively represent approximately 10 per cent of Gamuda’s RM54 billion unbilled orderbook following this latest award. The cost-plus contract structure underlying the RM1.71 billion package provides revenue visibility and supports a projected PBT margin of around eight per cent — consistent with the margin profile of Gamuda’s earlier data centre engagements.

HLIB further noted that the Port Dickson site has the potential to generate substantially more contract value in the years ahead. “Successive phases for the site, which entails a further six to seven data centres of similar size, should be up for grabs following the completion of water infrastructure works in 2027–2028,” the research house stated, indicating that Gamuda is well-positioned to participate in future tender rounds at the same location.

Reportedly, Gamuda’s Contract Pipeline Targets Infrastructure Investors and Institutional Analysts Tracking Malaysia’s Digital Economy Build-Out

A segment of the capital markets community has long sought construction companies with credible exposure to Malaysia’s rapidly expanding digital infrastructure sector, and Gamuda’s successive data centre contract wins have drawn sustained attention from institutional analysts and equity investors. Gamuda was built on decades of large-scale infrastructure delivery, and its recent pivot toward data centre construction reflects the company’s capacity to absorb complex, high-value mandates from global technology clients.

According to HLIB, the target audience for Gamuda’s evolving contract portfolio includes investors monitoring the company’s order book replenishment cadence and earnings acceleration potential. The firm closed FY26 with a RM25 billion contract win tally, and analysts estimate that securing a further RM5 billion to RM6 billion in new contracts for the remainder of calendar year 2026 (CY26) would be sufficient to maintain an unbilled order book of RM50 billion by year-end — factoring in a burn rate of approximately RM1.2 billion per month.

Whether monitoring Gamuda from an infrastructure investment thesis or a Malaysia digital economy angle, both institutional and retail market participants receive a consistent signal: the company’s near-term conversion pipeline is substantive and diversified, spanning the Northern Perak water project (estimated at approximately RM4 billion), renewable energy projects in Australia, the Penang LRT Systems package, and a MRT package in Taiwan.

Gamuda Has Operated in Malaysia’s Infrastructure Market for Decades, Building Analyst Confidence Through Order Book Scale and Earnings Visibility

Public records show that Gamuda Bhd is a Bursa Malaysia-listed infrastructure and construction conglomerate with a long-standing track record of delivering major domestic and international projects. The company’s unbilled orderbook currently stands at RM54 billion, a figure that provides multi-year revenue visibility and underpins analyst confidence in the group’s earnings trajectory.

HLIB has maintained a “Buy” rating on Gamuda with an unchanged target price of RM5.27, citing the company’s accelerating job replenishment pace and the anticipated earnings inflection from CY27 onwards. “While earnings growth in FY26 has been relatively muted due to the early-stage execution of a large proportion of its orderbook, we expect earnings to accelerate from CY27 onwards as these projects enter the S-curve and higher-margin contributions begin to crystallise,” HLIB stated in its research note.

The RM1.71 billion data centre contract serves as the first job win counted under HLIB’s FY27 job win assumption of RM20 billion, meaning the company enters the new financial year with immediate order book replenishment momentum. Registration records show Gamuda Bhd is incorporated and listed in Malaysia, with its shares traded on Bursa Malaysia under the infrastructure and construction sector. HLIB’s near-term pipeline assessment rates the prospect of Gamuda reaching its CY26 order book target as “highly achievable.”

Frequently Asked Questions About Gamuda Bhd’s RM1.71 Billion Data Centre Contract

What is the value and nature of Gamuda’s latest data centre contract win? Gamuda Bhd has secured a RM1.71 billion hyperscale data centre construction contract, confirmed as the company’s first letter of award for financial year 2027 (FY27). The project is located at a Port Dickson site owned by a US-headquartered multinational corporation.

What pre-tax profit margin is Gamuda expected to achieve on this data centre contract? According to Hong Leong Investment Bank Bhd (HLIB), the contract is expected to yield a pre-tax profit (PBT) margin of approximately eight per cent, structured on a cost-plus basis — consistent with the margin profile of Gamuda’s previously secured data centre packages.

How much of Gamuda’s unbilled orderbook is now attributed to data centre projects? Following the RM1.71 billion award, data centre projects account for approximately 10 per cent of Gamuda’s total unbilled orderbook, which stands at RM54 billion as of the announcement date.

How many data centre packages has Gamuda secured at the Port Dickson site? Gamuda has now secured two separate data centre construction packages at the same Port Dickson site, both awarded by the same US-headquartered MNC client.

What is the outlook for further data centre contracts at the Port Dickson site? HLIB estimates that a further six to seven data centres of similar size at the Port Dickson site could become available for tender following the completion of water infrastructure works in 2027–2028, representing a substantial pipeline of potential future contracts for Gamuda.

What is HLIB’s current rating and target price for Gamuda Bhd? HLIB maintains a “Buy” rating on Gamuda Bhd with an unchanged target price of RM5.27, citing earnings acceleration expected from CY27 onwards as existing orderbook projects enter their execution S-curve and higher-margin contributions materialise.

What additional contracts does Gamuda need to secure to maintain its CY26 orderbook target? HLIB estimates Gamuda needs to secure a further RM5 billion to RM6 billion in new contracts for the remainder of calendar year 2026 to maintain an unbilled orderbook of RM50 billion by year-end, based on a burn rate of approximately RM1.2 billion per month. The near-term pipeline includes the Northern Perak water project, renewable energy projects in Australia, the Penang LRT Systems package, and a Taiwan MRT package.

Gamuda’s Data Centre Strategy Reinforces Long-Term Earnings Growth Outlook Ahead of CY27 Inflection

The RM1.71 billion hyperscale data centre contract win represents a significant milestone in Gamuda Bhd’s FY27 order book replenishment strategy, reinforcing the company’s position as a primary construction partner for global technology clients expanding their digital infrastructure footprint in Malaysia. With data centre projects now representing 10 per cent of a RM54 billion unbilled orderbook, and HLIB projecting earnings acceleration from CY27 onwards, Gamuda’s financial profile is expected to strengthen materially as high-margin projects move through their execution cycles.

For more information on Gamuda Bhd’s project announcements and corporate developments, readers may refer to the company’s official investor relations channels via Bursa Malaysia disclosures or contact the Gamuda Bhd corporate communications office directly through the company’s registered headquarters in Petaling Jaya, Selangor, Malaysia.