Keppel (BN4) H1 2026 earnings summary

Executive summary

• Net profit excluding Non-Core Portfolio rose 25% year-over-year to $530 million, driven by strong Infrastructure and Connectivity performance, and FUM reached $106 billion by July, surpassing the $100 billion target ahead of schedule.

• Asset monetisation advanced with $1.7 billion announced year-to-date and a clear pathway to monetise up to $3.7 billion of legacy rigs, supported by a $1.5 billion Apollo commitment.

• Infrastructure and Connectivity segments delivered over 50% net profit growth year-over-year, offsetting weaker Real Estate results.

• Interim dividend of $0.15 per share declared, unchanged from prior year.

• Key milestones include full commercialisation of Bifrost Cable System and commencement of Keppel Sakra Cogen Plant operations.

Financial highlights

• Group revenue rose 25% year-over-year to $3,807 million in 1H26, led by a 27% rise in Infrastructure revenue.

• Net profit attributable to shareholders was $155 million, down 59% from 1H25, mainly due to a $375 million net loss in the Non-Core Portfolio.

• Recurring income rose 13% year-over-year to $467 million.

• Free cash inflow of $570 million in 1H26, reversing a $48 million outflow in 1H25.

• 34.2 million shares repurchased for $356 million since July 2025.

Outlook and guidance

• Targeting $2–3 billion in asset monetisation for 2026 and $200 billion FUM by 2030.

• Focus on scaling asset management, digital and energy infrastructure, and capturing growth in AI-driven sectors.

• Monetisation of non-core assets to continue, targeting substantial completion by 2030, with flexibility for earlier realization.

• M1 to pursue cost savings and industry consolidation opportunities.

• Fees from recent $13.5 billion fundraising to start contributing in H2 2026.