Seatrium (5E2) Q4 2025 earnings summary

Executive summary

• Achieved strong FY 2025 results with revenue growth of 25% (S$11.5B) and net profit doubling to S$324 million, driven by robust execution, diversified order book, and effective risk management.

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

• Order book stands at over S$17.8 billion, providing more than 1.5x FY 2025 revenue visibility, with a resilient pipeline of S$32 billion in opportunities.

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

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

Financial highlights

• Revenue rose 25% year-over-year to S$11.5B, driven by oil & gas and offshore wind segments.

• Net profit doubled to S$324 million from S$157 million in FY 2024; EBITDA grew 34% to S$837 million.

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

• Gross margin improved to 7.4%, up 430 basis points year-over-year.

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

Outlook and guidance

• Order book supports near-term earnings visibility; 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.

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