diff --git a/.github/trigger_files/IO_Iceberg_Managed_Integration_Tests_Dataflow.json b/.github/trigger_files/IO_Iceberg_Managed_Integration_Tests_Dataflow.json
index 9a4fbff0c0b7..0ca37f8c8e27 100644
--- a/.github/trigger_files/IO_Iceberg_Managed_Integration_Tests_Dataflow.json
+++ b/.github/trigger_files/IO_Iceberg_Managed_Integration_Tests_Dataflow.json
@@ -1,5 +1,5 @@
 {
   "comment": "Modify this file in a trivial way to cause this test suite to run.",
-  "modification": 2,
+  "modification": 1,
   "https://github.com/apache/beam/pull/39990": "removing dead code from FnApiDoFnRunner"
 }
diff --git a/sdks/java/io/iceberg/build.gradle b/sdks/java/io/iceberg/build.gradle
index 86964472cd81..103692dc435d 100644
--- a/sdks/java/io/iceberg/build.gradle
+++ b/sdks/java/io/iceberg/build.gradle
@@ -247,10 +247,13 @@ task dataflowIntegrationTest(type: Test) {
         includeTestsMatching 'org.apache.beam.sdk.io.iceberg.catalog.BigQueryMetastoreCatalogIT.testStreamToPartitionedDynamicDestinations'
         // CDC sink. The native-ValueKind round trip tests run on legacy worker.
         // The change-type-column tests run on Runner v2.
-        includeTestsMatching 'org.apache.beam.sdk.io.iceberg.catalog.LakehouseCatalogCdcWriteIT.changelogOfSinkWrittenTableRoundTripsThroughTheSource'
-        includeTestsMatching 'org.apache.beam.sdk.io.iceberg.catalog.LakehouseCatalogCdcWriteIT.changelogOfSinkWrittenTableRoundTripsThroughTheSourceWithChangeTypeColumn'
-        includeTestsMatching 'org.apache.beam.sdk.io.iceberg.cdc.sink.DeltaLakeToIcebergCdcIT.changeFeedAppliesToIcebergTable'
-        includeTestsMatching 'org.apache.beam.sdk.io.iceberg.cdc.sink.DeltaLakeToIcebergCdcIT.changeFeedAppliesToIcebergTableWithChangeTypeColumn'
+        // TODO(https://github.com/apache/beam/issues/40732): unskip these tests when managed service upgrades to 2.77
+        if (!project.hasProperty('enableManagedTransforms')) {
+          includeTestsMatching 'org.apache.beam.sdk.io.iceberg.catalog.LakehouseCatalogCdcWriteIT.changelogOfSinkWrittenTableRoundTripsThroughTheSource'
+          includeTestsMatching 'org.apache.beam.sdk.io.iceberg.catalog.LakehouseCatalogCdcWriteIT.changelogOfSinkWrittenTableRoundTripsThroughTheSourceWithChangeTypeColumn'
+          includeTestsMatching 'org.apache.beam.sdk.io.iceberg.cdc.sink.DeltaLakeToIcebergCdcIT.changeFeedAppliesToIcebergTable'
+          includeTestsMatching 'org.apache.beam.sdk.io.iceberg.cdc.sink.DeltaLakeToIcebergCdcIT.changeFeedAppliesToIcebergTableWithChangeTypeColumn'
+        }
     }
 
     doLast {