Sembcorp Industries (U96) H1 2026 earnings summary

Executive summary

• Turnover/revenue rose 28% year-over-year to S$3.77 billion, driven by higher energy prices in Singapore and the consolidation of Alinta following its acquisition in June 2026.

• Underlying net profit declined 25% year-over-year to S$369 million, mainly due to lower segment earnings and S$152–155 million in one-off transaction costs for the Alinta acquisition.

• Pro forma with Alinta, underlying net profit for 1H2026 would have been S$558 million, with EPS of S$0.314 and ROE of 19.1%.

• Interim dividend increased to 11.0 cents per share, up from 9.0 cents in 1H2025.

• Acquisition of Alinta in June 2026 significantly broadened the earnings base and recurring cash flows.

Financial highlights

• EBITDA decreased 3% year-over-year to S$768 million; adjusted EBITDA fell 5% to S$947 million.

• Reported group net profit was S$150 million, down 72% from S$536 million in 1H2025, mainly due to exceptional items and transaction costs.

• Exceptional items totaled negative S$152 million, mainly from Alinta acquisition costs.

• Free cash flow for 1H2026 was S$700 million, down from S$930 million (adjusted) in 1H2025.

• Net debt increased to S$13.9 billion, mainly due to Alinta acquisition and consolidation; group borrowings rose to S$15.2 billion.

Outlook and guidance

• Second half 2026 expected to be meaningfully stronger, with Alinta and Gas and Related Services driving growth and improved Singapore earnings.

• Renewables segment faces ongoing seasonal and tariff headwinds, especially in China, but expects improvement in India and continued pipeline execution.

• Integrated Urban Solutions to benefit from higher land sales and recurring income from ready-built factories.

• Alinta expected to contribute S$100 million net profit in 2H2026, with a full-year run rate of S$220–230 million.

• Commitment to sustained dividend growth while deleveraging.