Keppel (BN4) H1 2026 earnings summary

Executive summary

• Net profit excluding Non-Core Portfolio rose 25% year-over-year to $530 million, driven by higher recurring income and strong contributions from sponsor stakes and co-investments, with FUM reaching $106 billion by July, surpassing the $100 billion target ahead of schedule.

• Asset monetisation advanced with $1.7 billion announced year-to-date, and a clear pathway to monetise up to $3.7 billion of legacy rigs via the Keppel Offshore Fund.

• Infrastructure and Connectivity segments delivered over 50% net profit growth year-over-year, offsetting weaker Real Estate results.

• Key milestones include full commercialisation of Bifrost and commencement of Singapore's first hydrogen-compatible Keppel Sakra Cogen Plant.

• Interim dividend of $0.15 per share declared, unchanged from prior year.

Financial highlights

• Group revenue increased 25% year-over-year to $3,807 million, led by a 27% rise in Infrastructure revenue.

• Net profit attributable to shareholders was $155 million, down 59% from $378 million in 1H 2025, due to a $375 million net loss in the Non-Core Portfolio for Divestment.

• Recurring income rose 13% year-over-year to $467 million; SSCI earnings surged to $175 million from $18 million.

• Free cash inflow was $570 million, reversing a $48 million outflow in 1H 2025.

• Interim dividend of $0.15 per share to be paid on 21 August 2026.

Outlook and guidance

• Targeting substantial monetisation of non-core assets by 2030 to fund growth, reduce debt, and reward shareholders.

• FUM goal raised to $200 billion by 2030, with a robust deal pipeline across Infrastructure, Real Estate, and Connectivity.

• Focus on scaling asset management income and leveraging digital and energy infrastructure opportunities.

• Asset management fee growth expected to accelerate in H2 2026 as new FUM raised in July begins contributing.

• M1 to pursue cost savings and industry consolidation opportunities.