Seatrium (5E2) Q4 2025 earnings summary

Executive summary

• Achieved strong FY 2025 results with revenue growing 24% year-over-year to S$11.5B and net profit doubling to S$324M, driven by robust execution, risk management, and a diversified order book.

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

• Secured over S$4B in new orders, maintaining a net order book at S$17.8B and pursuing S$32B in pipeline opportunities.

• Delivered positive total shareholder return of 5.2% and exceeded synergy and cost savings targets, with over S$300M in annualized savings.

• Resolved legacy legal issues, including Operation Car Wash settlements with authorities.

Financial highlights

• Revenue rose 24% year-over-year to S$11.5B, driven by oil & gas and offshore wind segments.

• Net profit after tax increased 106% to S$324M; EBITDA grew 34% to S$837M.

• Operating cash flow grew 4.5x to S$440M, excluding one-off legacy payments.

• Free cash flow more than doubled to S$443M, with strong cash generation expected to continue.

• Gross margin expanded by 430bps to 7.4%.

Outlook and guidance

• Over S$17B net order book provides more than 1.5x FY 2025 revenue visibility.

• Pipeline of over S$32B in opportunities across oil & gas, offshore wind, and conversions, with strong prospects in Brazil, Guyana, and Europe.

• Guidance for continued margin improvement as legacy, lower-margin projects diminish and higher-margin post-merger contracts increase.

• Market tailwinds expected from sustained oil demand, gas as a transition fuel, and offshore wind expansion.

• Targeting mid-teen project margins over time, with further cost savings and operational efficiencies expected.