Megawide Construction Corporation expects its net income to surge by 79 percent this year, propelled by a growing pipeline of state-backed housing initiatives and an aggressive strategy to cut down its corporate debt.
Edgar Saavedra, Megawide Chairman and Chief Executive Officer, announced that the company is targeting a net profit of ₱1.2 billion for 2026, a sharp increase from the ₱669 million logged in 2025.
He explained that a stronger earnings outlook is being driven by lower borrowing costs and balance sheet optimization.
A major catalyst for the firm’s long-term expansion is the government’s “4PH” socialized housing program. Megawide’s total construction order book reached ₱48.7 billion by March 2026, which spans massive commercial developments, industrial builds, and mass housing projects managed by its real estate subsidiary, PH1 World Developers Inc.
At present, about 22,000 socialized housing units are under construction.
“We are on track to achieve our back-ended target of ₱1.2 billion net income for the year,” Saavedra said.
Saavedra remains highly optimistic that internal property ventures alongside major external build contracts will sustain the company’s upward trajectory.
This target follows a 24-percent profit growth in 2025, a momentum that extended into the opening quarter of 2026, where net income rose 26 percent year-on-year to ₱266 million.
The builder’s financial turnaround relies heavily on its debt reduction efforts. By March 2026, Megawide slashed its short-term debt by roughly ₱6 billion, pulling its bank net debt-to-equity ratio down to 0.8 times from 1.1 times in December 2025.
This deleveraging is projected to save the company anywhere from ₱250 million to ₱300 million in interest payments over the course of the year.
According to Saavedra, this capital restructuring aligns with a three-year-old framework centered on delivery, de-leveraging, and de-carbonization.
“We purposely focused on these three legs with the intent of building a stronger balance sheet and an ESG-compliant organization,” he said.
Looking forward, Saavedra noted that more debt-reduction activities are lined up for the rest of 2026 to enhance cash reserves and fortify their fiscal health.
In tandem with its housing portfolio, Megawide is diversifying into transport infrastructure to lock in long-term recurring revenues.
Active developments include the ₱1.2-billion Baguio City Integrated Terminal, the Cavite Bus Rapid Transit System, and the South Luzon Integrated Terminal Exchange.
In a separate development, Megawide’s board gave the green light for a regular common cash dividend of ₱0.145 per share, totaling a ₱293 million payout. Stockholders listed as of July 23, 2026, will receive the dividend on August 7, 2026, with the ex-dividend date slated for July 22.