KUALA LUMPUR – Malaysian Resources Corporation Bhd (MRCB) posted weaker earnings for the first quarter of 2025, but the group struck a confident tone on its outlook, having secured RM5.6 billion worth of major new contracts that are set to bolster revenue over the coming years.
The construction and property group reported a 54% year-on-year drop in revenue to RM218.2 million for the quarter ended March 31, while profit before tax fell to RM4.9 million from RM19 million in the same period last year.
In a statement today, MRCB attributed the softer performance to reduced contributions from both its property and construction divisions, as new development projects remained in their early phases and the LRT3 project approached completion.
Despite the weaker financials, MRCB said its Engineering, Construction & Environment Division landed several significant contract wins, including a RM2.9 billion job to rebuild Kompleks Sukan Shah Alam, a RM2.5 billion contract for reinstated stations and infrastructure works for LRT3, and a RM160.1 million highway upgrade on the North-South Expressway.
These new awards bring its total construction wins in 2025 to RM5.6 billion and reaffirm its position as a leading player in large-scale public infrastructure.
MRCB said the new project wins “demonstrates its capabilities in winning large, complex, public infrastructure projects, which will drive profits over the next four years.”
The division recorded RM152.7 million in revenue for the quarter, a 58% decline from the same period in 2024, largely due to the LRT3 project nearing completion with 99% physical and 97% financial progress. Operating profit for the division fell 55% year-on-year to RM7.9 million.
Meanwhile, the Property Development & Investment Division saw revenue halved to RM46 million, posting an operating loss of RM4.3 million.
Sales were mainly driven by completed units at Sentral Suites, VIVO and TRIA 9 Seputeh, and Alstonia in Bukit Rahman Putra. The division booked RM99.5 million in property sales in Q1 and reported RM753.6 million in unbilled sales.
A notable development milestone was the successful March launch of The Symphony Centre in Auckland, New Zealand—a 21-storey mixed-use project with a gross development value of RM1.1 billion. The project forms part of MRCB’s RM3.5 billion in property launches planned for this year.
MRCB also recorded a one-off gain of RM22.6 million from the disposal of a 70% stake in CSB Development Sdn Bhd during the quarter.
Looking ahead, MRCB said it remains focused on executing its new and ongoing projects while pursuing RM1.7 billion in tenders, including airport upgrades, roadworks, and power system enhancements, signalling continued optimism despite near-term earnings pressure. — May 30, 2025