KUALA LUMPUR: IJM Corporation Bhd is positioning itself for its next growth phase, riding on a record-high order book of RM12.9 billion and a strong revenue rebound in the first quarter of financial year 2026 (FY26).
The group, which posted revenue of RM1.73 billion for the quarter, a 23.4% year-on-year increase, said it is steering its business towards future-proof sectors such as data centres, industrial properties and overseas infrastructure, while maintaining steady contributions from its construction, toll road and plantation divisions.
“We have continued the growth momentum from last year. Our construction order book now stands at RM12.9 billion, the highest in our history, driven by strong wins in the infrastructure and industrial space,” said IJM CEO and managing director Datuk Lee Chun Fai at a press conference following the group’s AGM and results briefing today.
A key focus area is the group’s push into the fast-growing data centre industry, particularly in Johor, which has become a regional hub for hyperscale operators.
IJM is constructing a data centre campus there and is actively bidding for new projects.
“Johor is the new hotspot for data centres. Our strategy is to build capability in this space, and we are confident of more wins as operators look to Malaysia for capacity,” Lee said.
On the property front, the group is shifting away from traditional residential projects and towards industrial development. Its upcoming Bandar Rimbayu Industrial Park is expected to tap into strong demand from manufacturers and logistics players.
“Industrial demand has outpaced residential in recent years, and this will be a strong pillar for us. We are evolving our property business to capture this,” Lee said.
Beyond Malaysia, IJM is ramping up its presence in the United Kingdom through its construction arm.
The group has secured several building projects there, with more in the pipeline, as part of a strategy to diversify geographically and benefit from the UK’s urban regeneration market. “We see good prospects in the UK. It allows us to broaden our revenue base and tap into a mature, resilient market,” said Lee.
Domestically, the group has been granted a 30-year concession to develop and operate the New Pantai Expressway (NPE) extension, which will improve connectivity in the Klang Valley. “This is a significant milestone for our toll road portfolio, providing us with recurring income visibility,” Lee said.
While pivoting to new growth engines, IJM’s traditional divisions remain stable contributors.
The group’s plantation arm benefited from higher crude palm oil prices and productivity improvements, while its toll road segment continued to register traffic recovery post-pandemic.
Construction remains the backbone, accounting for the bulk of the order book. Key projects include infrastructure packages under Mass Rapid Transit 3 and upcoming highway developments.
“Our construction team has proven execution capability, and with RM12.9 billion secured, we have good earnings visibility for the next few years,” Lee noted.
Looking ahead, IJM is embracing digital transformation and sustainability. The group has introduced digital tools to enhance project efficiency and reduce costs, while also aligning with Malaysia’s carbon reduction commitments.
“Sustainability is no longer optional, it’s part of our licence to operate. We are embedding green practices in construction, property and plantation, and this will enhance long-term competitiveness,” Lee said.
With a strong balance sheet, record-high order book and entry into new growth sectors, IJM expects to sustain its earnings momentum through FY25 and beyond.
“Going forward, our growth will come from a mix of domestic infrastructure, data centres, industrial property and international expansion. We are well-positioned to capture opportunities in Malaysia and abroad,” Lee said.
Analysts say the group’s focus on industrial and data-driven assets aligns with broader economic trends, positioning IJM as one of the few diversified Malaysian conglomerates actively transforming its portfolio.