BUSINESS REVIEW: INFORMATION TECHNOLOGY • Enterprise Digital Solutions The segment provides systems integration, consulting and digital transformation services to public and private sector clients. These activities cover implementation of enterprise systems and digital platforms, with revenue derived from project engagements and ongoing service contracts. • Cloud and Digital Infrastructure The Group has expanded into cloud and digital infrastructure through strategic partnerships. This includes the establishment of Gamuda DNeX Cloud as a joint venture. These capabilities support scalable digital platforms and enable participation in areas such as sovereign cloud and artificial intelligence-enabled solutions. The trade facilitation segment remained the main contributor to the IT segment revenue, accounting for approximately 76% of total segment revenue. The balance came from technology consulting and systems integration activities. FINANCIAL PERFORMANCE The IT segment delivered a strong turnaround, recording a PBT of RM58.2 million compared to an LBT of RM11.3 million in FY2024. This improvement was primarily driven by the divestment of the loss-making Subsea Telco business. The segment also benefited from ongoing cost optimisation initiatives and improved cost efficiency, contributing to a more streamlined operating structure. On a core basis, excluding the divested business, PBT increased to RM66.2 million from RM40.6 million in FY2024, supported by improved project margins and enhanced operational efficiency. Revenue stood at RM162.3 million as compared to RM244.9 million in FY2024, reflecting the divestment and completion of a major project lifecycle. KEY INITIATIVES AND DEVELOPMENTS In FY2025, the segment focused on strengthening core platforms and expanding into higher-value digital solutions. Key contracts were extended, including the NSW and iGFMAS. The iGFMAS maintenance contract was renewed in June 2025 for RM103.8 million over a 60-month period, while the NSW contract was extended in September 2025, supporting revenue visibility. The segment expanded its enterprise digital solutions capabilities, with emphasis on delivery efficiency, project execution and customer engagement in both public and private sectors. The Group progressed its cloud and digital infrastructure activities through strategic partnerships, including initiatives in sovereign cloud and digital infrastructure. These developments support scalable solutions and enable participation in areas such as artificial intelligence and secure digital platforms. RISKS AND MITIGATION Revenue Concentration Risk Challenges A significant portion of the segment’s revenue is from key contracts, particularly within its trade facilitation business. Dependence on a limited number of major contracts may affect revenue stability if such contracts are not renewed or replaced. Challenges Revenue from project-based activities may fluctuate due to the completion of major contracts and variability in new project awards, affecting overall revenue and earnings consistency. Mitigation The Group maintains strong engagement with key customers to support contract continuity while expanding its service offerings to diversify revenue sources and reduce reliance on individual contracts. Mitigation The Group continues to increase the proportion of recurring revenue through long-term service agreements and managed services, while maintaining a pipeline of new projects to support revenue continuity. Project-Based Revenue Variability Risk 61 OPERATIONAL REVIEW SUSTAINABILITY STATEMENT GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION INTELLIGENCE POWERING
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