Keppel (BN4) Q2 2025 earnings summary

Executive summary

• Net profit rose 24% year-on-year to $378 million in 1H 2025, driven by transformation into a global asset manager and operator with an asset-light strategy.

• Funds under management reached $91 billion as of June 2025, with $915 million in asset monetisation announced year-to-date and over $500 million in potential divestments under negotiation.

• Non-core assets valued at $14.4 billion are reported separately and targeted for divestment to enhance transparency and focus on recurring income.

• Interim dividend of $0.15 per share declared, with a $500 million share buyback programme launched.

• Asset-light strategy and recurring income underpin progress towards Vision 2030 targets.

Financial highlights

• Net profit for New Keppel (excluding non-core) surged 25% year-on-year to $431 million in 1H 2025.

• Recurring income rose 7% year-on-year to $444 million.

• Group revenue declined 5% year-on-year to $3,057 million in 1H 2025.

• Annualized ROE for New Keppel improved to 15.4% from 13.2% a year ago.

• Free cash outflow improved to $48 million from $216 million in the prior period.

Outlook and guidance

• On track to achieve Vision 2030 interim FUM and asset monetisation targets by end-2026, aiming for $100 billion FUM by end-2026 and $200 billion by 2030.

• Targeting substantial monetisation of the $14.4 billion non-core portfolio by 2030, providing capital for growth, debt reduction, and shareholder rewards.

• Asset-light model expected to deliver ROE significantly above 15%.

• Infrastructure Division to expand power capacity, including a 600 MW plant in 1H 2026 and up to 500 MW of renewable imports from 2028.

• Connectivity Division to grow data centre FUM from $12 billion to $19 billion in the near term.