MGB lifts dividend five-fold since FY2022 as net gearing stays low

KUALA LUMPUR, 6 AUGUST 2026 —

MGB Berhad will pay a final single-tier dividend of 1.31 sen per share for the year ended 31 December 2025, lifting its full-year total to 2.57 sen per share.

The 2.57 sen payout is MGB’s second-highest dividend in the past four years and five times the 0.50 sen declared in FY2022. The dividend payout ratio has risen from 20% to 30%, matching the Group’s stated policy of distributing at least 30% of annual profit attributable to shareholders.

MGB said the stronger returns come with a strong balance sheet. As of 31 March 2026, the Group reported net asset per share of RM1.08 and a net gearing ratio of 0.12 times.

Tan Sri Dato’ Sri Ir. (Dr.) Lim Hock San, JP, Group Executive Chairman of MGB, said the dividend reflects the Group’s drive to reward shareholders while keeping capacity for expansion. “As MGB pursues larger-scale opportunities domestically and internationally, including projects in Saudi Arabia, we must retain sufficient resources for project execution and future growth,” he said after the annual general meeting on 19 June 2026.

The final dividend was approved at the meeting and will be paid on 5 August 2026 to shareholders on the register on 15 July 2026. The ex-date is 14 July 2026.

MGB reported it secured more than RM1.0 billion in new contracts during FY2025, including about RM532.6 million in Saudi Arabia. The enlarged order book strengthens earnings visibility and positions the Group for larger projects.

Analysts tracking LBS Bina Group Berhad’s construction and property arm will watch MGB’s ability to convert the order book into cash and maintain the 0.12 times net gearing while funding growth.