Seatrium (5E2) H2 2025 earnings summary

Executive summary

• Net profit for FY2025 doubled to S$324 million, a 106% increase year-over-year, driven by margin expansion, disciplined project execution, and a diversified order book.

• Revenue rose 24% year-over-year to S$11.5 billion, with strong contributions from Oil & Gas and Offshore Wind segments.

• Gross margin more than doubled to 7.4% from 3.1% last year, reflecting improved project mix and operational efficiency.

• Net order book stands at S$17.8 billion, providing more than 1.5x FY2025 revenue visibility and resilience with 40% in renewables and green solutions.

• Significant progress in cost optimization, asset divestments, and capital returns, including a proposed doubling of dividends and ongoing share buybacks.

Financial highlights

• Revenue rose 24% year-over-year to S$11.5 billion, driven by Oil & Gas and Offshore Wind segments.

• Net profit doubled to S$324 million from S$157 million in FY2024.

• EBITDA increased 34% to S$837 million; gross profit tripled to S$848 million.

• Operating cash flow (excluding one-offs) increased 4.5x to S$440 million; free cash flow more than doubled to S$443 million.

• G&A expenses as a percentage of revenue declined to 3% from 3.5% last year.

Outlook and guidance

• Net order book of S$17.8 billion provides revenue visibility at more than 1.5x FY2025 revenue, with a pipeline of S$32 billion in diversified opportunities across segments and geographies.

• Management targets further gross margin expansion, with mid-teen project margins as legacy contracts diminish.

• Continued focus on cost discipline, digitalization, and operational efficiency to drive future margin improvement.