SABAH: Sabah-based major road infrastructure construction player Azam Jaya Bhd recorded revenue of RM161.1 million for the nine months (9M) ended September 30, 2025 (FY25), compared to RM207.2 million in the 9M FY24.
This was due to the temporary moderation in construction activities during the first half of the year, which has since been resolved in the current quarter.
Additionally, net profit stood at RM7.1 million versus RM12.2 million achieved in the previous year, due to the impact of lower revenue and project execution adjustments.
For the third quarter (Q3) of FY25, the group reported a revenue of RM59.4 million, up by 1.7% from RM58.4 million in Q3 FY24 supported by the normalisation of construction activities.
Meanwhile, net profit for the quarter stood at RM4.2 million compared to RM4.4 million achieved in Q3 FY24 due to higher income tax expenses.
Quarter-on-quarter (QoQ) performance showed a strong improvement as activity
levels recovered.
Revenue rose 37.8% QoQ to RM59.4 million, from RM43.1 million in Q2 FY25.
The growth reflects the improvement in construction activities at certain project sites and enhanced project coordination.
Net profit also surged 75.0% QoQ to RM4.2 million from RM2.4 million in Q2 FY25, driven by lower finance costs and administrative expenses.
Executive director Datuk Jessica Lo said despite navigating some early-year headwinds, the company is encouraged to see operations regaining momentum as construction activities continue to normalise.
“The third quarter showed clear improvement across our project sites, and our teams have been working hard to tighten coordination and strengthen execution on the ground.
“With an unbilled order book of RM1.45 billion as at September 30, 2025, which
includes the recently awarded RM120.9 million design-and-build contract for the
Tawau Airport upgrading works, it reflects our efforts of replenishing our order book
while upholding our focus on efficient execution and timely project delivery.
“We are also encouraged by the government’s continued commitment to infrastructure development in Sabah, including RM1.0 billion in development funds for water supply improvements approved by the government, and RM6.9 billion allocated under Budget 2026 to critical infrastructure projects.
“Additionally, the Sabah state government has approved RM1.2 billion for key
infrastructure initiatives such as roads, utilities, and water treatment facilities.
“This opens up opportunities for us to expand our presence, enhance our operational capabilities, and strengthen our long-term engagement with both federal and state development programmes.
“These positive indicators help position us for steady growth, operational resilience, and long-term value creation, all while contributing to Sabah’s broader infrastructure development objectives,” she said.
Reaffirming its commitment to shareholder value, the board had on November 11, 2025 declared an interim dividend of 0.5 sen per share in respect of the financial year ended December 31, 2025, translating to a dividend payout of RM2.5 million.
This is in line with its dividend policy to distribute up to 30.0% of its net profit.
