Seatrium (5E2) Q2 2026 earnings summary

Executive summary

• Revenue for 1H 2026 rose 5% year-on-year to SGD 5.6 billion, driven by strong project execution and milestone achievements, tracking towards the FY 2028 target of SGD 10–12 billion.

• Net profit increased 54% year-on-year to SGD 212 million, excluding one-off divestment gains; including these, net profit surged 158% to SGD 373 million.

• Gross profit margin expanded to 8.6% from 7.4% a year ago, reflecting improved project mix and cost discipline.

• Strong order book of SGD 13.3 billion with a diversified pipeline exceeding SGD 32 billion across global markets, providing clear earnings visibility.

• Strategic focus shifted from recovery to value creation, emphasizing margin expansion, cost optimization, and sustainable growth.

Financial highlights

• Revenue up 5% year-on-year to SGD 5.6 billion, with gross profit rising 22% to SGD 482 million.

• EBITDA (excluding divestments) rose 20% to SGD 479 million; total EBITDA grew 60% to SGD 651 million.

• Free cash flow reached SGD 237 million, a turnaround from negative SGD 5 million in the prior period.

• G&A costs stable at 3% of revenue; net leverage improved to 0.5x and net gearing at 0.1x.

• Cash and cash equivalents stood at SGD 1.68 billion at period end, with SGD 3.4 billion in available liquidity.

Outlook and guidance

• Confident in delivering a stronger full-year 2026 performance, with margin drivers intact and further gains from divestments.

• On track to achieve FY28 targets: SGD 10–12 billion annual revenue, over SGD 1 billion EBITDA, and at least 8% ROE.

• Robust order pipeline at SGD 32 billion over 24 months, with significant opportunities in oil & gas, LNG, and offshore wind.

• Offshore wind momentum expected to return in 2027, with grid investments in Europe and Asia Pacific.

• Committed to enhancing shareholder returns through disciplined capital management and share buybacks.