Seatrium (5E2) Q2 2026 earnings summary

Executive summary

• Revenue for 1H 2026 rose 5% year-on-year to SGD 5.62 billion, driven by strong project execution and milestone achievements, tracking towards the FY 2028 target of SGD 10–12 billion.

• Net profit increased 158% year-on-year to SGD 373 million, with NPAT excluding divestment gains up 54% to SGD 212 million, reflecting higher revenue, asset sales, and lower finance costs.

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

• Order book stands at SGD 13.3 billion, with a diversified global pipeline exceeding SGD 32 billion and 24 project deliveries through 2033.

• Strategic focus has shifted to value creation, margin expansion, and sustainable growth, supported by cost optimization and divestments.

Financial highlights

• EBITDA (excluding divestments) rose 20% to SGD 479 million; total EBITDA grew 60% to SGD 651 million.

• Free cash flow reached SGD 237 million, a turnaround from negative SGD 5 million in the prior period.

• G&A costs stable at 3% of revenue; CapEx was SGD 52 million, mainly for project and safety needs.

• Portfolio optimization and asset divestments unlocked SGD 167 million in cash and S$172 million in gains.

• Cash and cash equivalents stood at SGD 1.68 billion at period end, with SGD 3.4 billion in available liquidity.

Outlook and guidance

• Confident in achieving 2028 steady-state targets, with revenue and ROE tracking towards goals and >95% Series Build projects supporting near-term earnings visibility.

• Expecting stronger full-year 2026 performance, with margin drivers and divestment gains intact.

• Robust global pipeline of SGD 32 billion over 24 months, with significant opportunities in LNG, FPSO, FLNG, FSRU, and offshore wind.

• Offshore wind momentum expected to return in 2027, especially in Europe and Asia Pacific.

• Committed to enhancing shareholder returns through disciplined capital management and share buybacks.