Keppel (BN4) Q1 2026 TU earnings summary

Executive summary

• Net profit for 1Q26 was slightly lower year-over-year, with higher Infrastructure and Connectivity earnings offset by lower Real Estate contributions.

• Recurring income rose slightly due to higher operating income and stable asset management profit.

• Strong fundraising momentum with $0.4b of new funds under management added and $2b of LP commitments expected to finalize soon.

• Performance remained resilient despite a volatile international environment.

• Asset monetisation continues, with $385m announced year-to-date and a target of $2-3b for 2026.

Financial highlights

• 1Q26 net profit was slightly lower year-over-year, mainly due to fair value losses and lower monetisation gains from the Non-Core Portfolio.

• Asset management fees increased 13% year-over-year, reaching $108m in 1Q26.

• Free cash inflow in 1Q26, reversing outflows from 1Q25, with positive cash from both operating and investing activities.

• Recurring income increased slightly year-over-year, supported by stable asset management net profit and higher operating income.

• Realised $347m in completed asset monetisation transactions year-to-date.

Outlook and guidance

• Targeting $2-3b in non-core asset monetisation for 2026, with $385m already announced year-to-date.

• About $2b in Limited Partner commitments are being finalised, reflecting strong fundraising momentum.

• Monitoring potential impacts from the Middle East conflict, with limited direct exposure but ongoing vigilance for broader macroeconomic effects.

• Continued focus on asset-light strategy to unlock capital for growth, reduce debt, and reward shareholders.