Jardine Matheson Raises 2026 Earnings Forecast, Takes Full Ownership of Gammon

Jardine Matheson raised its 2026 earnings forecast on October 13 and agreed to buy the half of Gammon Construction it did not already own. The two decisions put a higher near-term earnings estimate alongside a larger commitment to the group’s construction and engineering business.

Jardine expects earnings per share of US$5.50 to US$5.65, up from its previous estimate of about US$5.33, according to The Business Times and The Straits Times. The company said the new range represents growth of 3% to 6% against 2025 earnings per share adjusted for disposals and reclassifications. It attributed the revision to stronger-than-expected performance across its portfolio.

Jardine said it acquired Balfour Beatty’s 50% stake in Gammon for £250 million (about US$330 million), making it the contractor’s sole owner. According to both newspapers, payment is split into three instalments: at completion on October 13, at the end of 2027 and in late 2028. Jardine said the price is not subject to post-closing adjustments and that the purchase includes future dividend entitlements and cash on Gammon’s balance sheet.

Gammon operates primarily in Hong Kong and Singapore. Jardine has invested in the contractor since 1969, according to the two reports. It is placing Gammon within Jardine Engineering & Infrastructure, a platform that also includes the wholly owned Jardine Engineering Corporation and two joint-venture holdings, Jardine Schindler and Hactl.

“Our goal remains doubling the earnings of JE&I in the coming years by focusing on strategic investments that expand controlled earnings and capabilities across Asia.”Lincoln Pan, CEO of Jardine Matheson

Jardine expects the acquisition to add modestly to earnings from its first year, The Business Times and The Straits Times reported. That is the company’s projection; neither report gives a quantified contribution from Gammon to the revised 2026 forecast.

Lincoln Pan, Jardine Matheson’s chief executive, said the group aims to double the engineering and infrastructure platform’s earnings in the coming years through investments that increase its controlled earnings and capabilities across Asia. The platform is led by Kevin O’Brien, formerly chief executive of Gammon and Jardine Engineering Corporation. O’Brien cited demand for infrastructure supporting artificial intelligence, energy and industrialisation as potential sources of regional business, according to both reports.

Jardine shares closed at US$55.83 on October 12, down US$0.90, or 1.6%, ahead of the October 13 statements, the newspapers reported.