Keppel Stock Earnings Reports

Keppel reported a strong 2025 driven by its transformed "New Keppel" asset-management-and-operator model. Excluding noncore and discontinued items, New Keppel net profit rose 39% y/y to S$1.1bn with ROE improving to 18.7%. Funds under management (FUM) grew to US$95bn (on track for the US$100bn target by end-2026). Infrastructure was the largest contributor, with record recurring earnings (recurring income +21% to S$941m) and resilient integrated-power EBITDA supported by long-term contracts; decarbonization & sustainability solutions delivered EBITDA of S$130m (up 32% y/y). Keppel expanded its data-center power bank to >1GW in APAC (including a 720MW Melbourne site) and Bifrost subsea cable began commercial traffic, creating new long-term recurring income. Asset monetization progressed with ~S$2.9bn announced in 2025 and ~S$1.6bn completed; total monetization since Oct 2020 is ~S$14.5bn and noncore portfolio for divestment stands at ~S$13.5bn (target: substantially monetize by 2030). Capital returns: full-year ordinary dividend S$0.34/share and a proposed special dividend to bring total FY25 dividends to ~S$0.47/share; share buybacks ongoing (S$116m spent so far of a S$500m program). Headwinds and items to note: consolidated net profit was lower (S$789m) mainly due to a S$222m accounting loss on the proposed M1 telco sale (discontinued operations) pending regulatory approval; legacy O&M and rig assets remain a drag and are being actively managed/monetized. Management emphasizes continued prudence in capital management, reinvestment in growth (AI/digital capabilities), and focus on converting FUM growth and long-term contracts into recurring fee and operating income.