Jardine Matheson raises 2026 earnings guidance as high as US$5.65 per share

[SINGAPORE] Jardine Matheson expects its 2026 earnings per share (EPS) to come in between US$5.50 and US$5.65, reflecting stronger than previously expected portfolio performance, it said on Tuesday (Oct 13).

The company, which previously expected EPS of about US$5.33, said the new range will be a 3 to 6 per cent increase over its 2025 EPS when adjusted for disposals and reclassifications that year.

Jardine Matheson on Tuesday also said that it has acquired a 50 per cent stake in Gammon Construction from Balfour Beatty, making it the sole owner, for £250 million (US$330 million). The cash will be paid in three tranches: at completion on Tuesday, on Dec 31 next year and on Dec 29, 2028.

The transaction is expected to be “modestly accretive” from its first year, said Jardine Matheson, adding that pricing is not subject to post-closing adjustments. The company will also acquire the Gammon Construction business inclusive of all future dividend entitlements and cash on balance sheet.

Gammon Construction, an Asian construction and engineering company operating primarily in Hong Kong and Singapore, “enhances growth and scale for Jardine Engineering & Infrastructure (JE&I)”, said Jardine Matheson, which has been a Gammon investor since 1969.

JE&I combines the wholly owned Jardine Engineering Corporation and Gammon Construction with two joint venture assets, Jardine Schindler and Hactl, into a new platform.

It is led by Kevin O’Brien, former CEO of Gammon Construction and Jardine Engineering Corporation, and has plans for growth supported by “targeted” mergers and acquisitions – starting with Gammon Construction.

O’Brien said he expects a “significant opportunity” for Gammon to continue its growth trajectory through capturing broader regional growth trends, including demand from artificial intelligence for supporting infrastructure, energy and sustainable solutions and accelerating industrialisation across Asia.

Lincoln Pan, CEO of Jardine Matheson, said: “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.”

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Shares of Jardine Matheson closed 1.6 per cent or US$0.90 lower at US$55.83 on Monday.