CSE Global (544) H1 2026 earnings summary

Executive summary

• Revenue grew 27.4% year-over-year to S$561.5 million, driven by strong Electrification segment growth in the Americas, especially from data centre projects.

• Net profit declined 19.3% to S$13.2 million, impacted by lower margins and higher costs.

• Adjusted EBITDA rose 6.5% to S$41.4 million, with margin narrowing to 7.4%.

• Operating cash flow improved to S$15.9 million from an outflow in the prior year.

• Order intake increased 28.3% year-over-year to S$470.2 million, with a robust order book of S$620.4 million.

Financial highlights

• Gross profit grew 8.8% year-over-year to S$133.7 million, but gross margin declined to 23.8% from 27.9% due to a higher mix of lower-margin projects.

• Adjusted net profit fell 12.4% to S$13.9 million, reflecting higher interest and tax expenses.

• Operating expenses increased by S$8.0 million, mainly from higher personnel and facility costs.

• Interim dividend of 0.91 cents per share declared, payable on 30 September 2026.

• Earnings per share: 1.82 cents (down from 2.31 cents YoY).

Outlook and guidance

• Healthy business outlook supported by a strong order book providing revenue visibility for the rest of the year.

• Focus remains on Electrification and Communications, with positive demand trends in data centres and power infrastructure.

• Earnings growth expected to moderate in FY2026 due to investments in new facilities, project wind-down costs, and lower margins on certain projects.

• Continued pursuit of opportunities in urbanisation, electrification, and decarbonisation.