Seatrium (5E2) H1 2026 earnings summary

Executive summary

• Revenue for 1H 2026 rose 5% year-on-year to S$5.6 billion, driven by strong project execution, higher-margin mix, and steady progress toward FY2028 targets.

• Net profit increased 158% year-on-year to S$373 million, with underlying net profit (excluding divestment gains) up 54% to S$212 million.

• Gross profit margin expanded to 8.6% from 7.4% a year ago, reflecting improved project mix, cost discipline, and productivity gains.

• Strategic focus shifted from recovery to value creation, emphasizing margin expansion, cost optimization, and sustainable growth.

• Net order book stands at S$13.3 billion, with a diversified global pipeline exceeding S$32 billion and strong earnings visibility.

Financial highlights

• EBITDA (excluding divestments) rose 20% to S$479 million; gross profit increased 22% to S$482 million.

• Free cash flow turned positive at S$237 million, a reversal from negative S$5 million previously.

• G&A costs stable at 3% of revenue; net leverage improved to 0.5x and net gearing at 0.1x.

• Weighted average cost of debt at 3.5%, with S$3.4 billion in available liquidity.

• Basic EPS rose to 11.01 cents from 4.26 cents.

Outlook and guidance

• Confident in delivering a stronger FY2026, with margin drivers intact and further gains from divestments.

• On track for FY2028 targets: S$10–12 billion annual revenue, >S$1 billion EBITDA, and ≥8% ROE.

• Robust order pipeline at S$32 billion over 24 months, with significant opportunities in oil & gas, LNG, and offshore wind.

• Offshore wind momentum expected to return in 2027, with grid investments in Europe and Asia Pacific.

• Focus on converting pipeline into high-quality, higher-margin orders and enhancing shareholder returns.