GSIS increases stake in Megawide to 9.5 %

MANILA, Philippines — The Government Service Insurance System (GSIS) has raised its stake in Megawide Construction Corp., becoming one of the major local institutional investors in the listed engineering and infrastructure company.

GSIS has acquired a total of 111.94 million shares of Megawide in a series of block transactions over the past 60 days, bringing its ownership to 9.5 percent, representing 191.71 million common shares.

Megawide said the move indicates GSIS’ support for the company’s nation-building initiatives and its prospects moving forward.

“The investment of GSIS reflects another vote of confidence in our vision of engineering a first-world Philippines, particularly through our participation in various government-initiated campaigns and public-private partnerships that aim to address critical social and transport infrastructure in the country,” Megawide chairman and CEO Edgar Saavedra said.

Saavedra said this includes the company’s participation in the construction of socialized housing units under the expanded 4PH program using mechanized and modernized techniques anchored on the precast system.

In September last year, state-owned Pag-IBIG Fund, through the endorsement of the Department of Socialized Housing and Urban Development, entered into a partnership with Megawide for the construction of more than 7,000 socialized housing units under the government’s expanded 4PH program.

Aside from the company’s participation in the construction of socialized housing units, Saavedra said Megawide is also rolling out several transport-centric developments to modernize and organize the country’s public transport systems.

Megawide is developing the Baguio City Integrated Terminal, the South Luzon Integrated Terminal Exchange and the Cavite Bus Rapid Transit System to expand its transit-centric development portfolio.

“The GSIS investment signifies government support anew for Megawide and serves as an additional confidence-builder and extra seal of approval for the company’s nation-building initiatives and value-creation objectives,” it said.

Megawide is expecting profit growth to continue this year as well as in 2027 amid the company’s robust pipeline of projects.

The company’s next income is expected to reach around P1.2 billion in 2026 and possibly P1.8 billion to P2 billion in 2027.

In 2025, Megawide recorded a 24-percent increase in net income to P669 million, with construction remaining the company’s largest revenue driver, followed by property development under PH1 World Developers.

The company was also off to a strong start for the year, posting a 26 percent year-on-year jump in net income to P265 million during the first quarter on the back of a strong construction business.