Megawide Construction Corp. Eyes Special Dividend and Profit Growth

Megawide Construction Corp. is contemplating the distribution of a special dividend before the conclusion of 2026, as the company expresses confidence in meeting its operational and financial objectives. Chairman and CEO Edgar Saavedra indicated that the firm is poised for another dividend payout, following the declaration of cash dividends earlier this year.

Saavedra noted that the second half of this year will be exciting and shape the company's direction moving forward, expressing confidence in achieving operational and financial targets, which will provide means for another set of dividends before the end of the year.

Megawide had previously declared cash dividends of ₱0.145 (approximately $0.03) per share on June 23, payable to shareholders of record as of July 23, 2026. This dividend represents a yield of about 3.6% based on the stock's latest closing price of ₱4.08 (around $0.08).

“The second half of this year will be exciting and shape our direction moving forward. We are confident that we will achieve our operational and financial targets, which will provide us means for another set of dividends before the end of the year.”Edgar Saavedra, Chairman and CEO

In a related development, the company is targeting a net income of about ₱1.2 billion ($21.5 million) for 2026, bolstered by reduced borrowing costs and growth in its construction and real estate sectors. Chief Finance Officer Jez G. Dela Cruz remarked that the firm is on track to achieve this target, with expectations to reach ₱1.82 billion ($39 million) by 2027.

Dela Cruz stated that the company is generally on track in terms of its plans and programs, looking to reach around ₱1.2 billion in net income for the year and possibly ₱1.82 billion in 2027.

“We are generally on track in terms of our plans and programs… We are looking to reach around ₱1.2 billion in net income for the year and possibly ₱1.8 billion in 2027.”Jez G. Dela Cruz, Chief Finance Officer

Megawide has successfully reduced its short-term obligations by about ₱7 billion (approximately $126 million) since the start of the year, which is expected to yield annual interest savings of around ₱480 million ($8.6 million). This financial maneuvering is anticipated to further support the company’s earnings.

Additionally, the company recently monetized its investment in Citicore Renewable Energy Corp., generating proceeds of approximately ₱4.5 billion ($81 million) that will be allocated towards the expansion of its precast business and further debt reduction.

Megawide's construction order book currently stands at ₱48.7 billion ($873 million), with ongoing projects including the Baguio City Integrated Terminal, the South Luzon Integrated Terminal Exchange, and the Cavite Bus Rapid Transit (BRT) System. The firm is also actively participating in the government’s expanded Pambansang Pabahay para sa Pilipino (4PH) Program, which aims to provide affordable housing.

“Right now, the infrastructure is still being built. We are targeting, hopefully before the end of the year for it to be completed.”Jaime Raphael C. Feliciano, Chief Business Development Officer

Feliciano, Megawide’s Chief Business Development Officer, mentioned that the infrastructure for the Cavite BRT project is still being built and is targeted for completion before the end of the year, pending regulatory approvals from the Department of Transportation to move forward.

As Megawide continues to navigate its financial strategies and operational expansions, its stock performance remains stable, with shares closing unchanged at ₱4.00 ($0.08) each on Wednesday.