Keppel Stock Earnings Reports

Keppel delivered a strong 2025, driven by the continued transformation into an asset-light global asset manager and operator (the "New Keppel"). Key financial highlights: New Keppel net profit rose 39% YoY to $1.1 billion, overall net profit was $789 million (impacted by discontinued operations and a $222 million accounting loss related to the proposed M1 telco sale), free cash inflow was $611 million, and New Keppel ROE improved to 18.7%. Funds under management (FUM) grew from $88 billion to $95 billion, on track for the $100 billion target by end-2026. Infrastructure was the largest earnings contributor, with record recurring earnings and strong performance from integrated power and decarbonization/sustainability solutions (the latter delivering $130 million EBITDA, above prior expectations). Keppel is scaling data center powerbank capacity (now >1 GW in APAC) and has begun commercial traffic on the Bifrost subsea cable. Monetization progress: $2.9 billion of divestments announced in 2025 and ~$1.6 billion completed; total announced monetization since Oct 2020 ~ $14.5 billion; noncore portfolio for divestment stands at ~$13.5 billion with a goal to substantially monetize by 2030. Capital returns: management proposed a final ordinary dividend of $0.19 and a special dividend (cash + in-species Keppel REIT units) resulting in total FY2025 distribution of ~$0.47 per share (c.56% payout ratio of New Keppel net profit). Balance sheet and capital management: New Keppel net debt/EBITDA improved to ~2x, cost savings run-rate $98 million with a $120 million target by end-2026, and an ongoing $500 million buyback program (partially executed). Management reiterated focus on long-term contracting in power, growing recurring income via asset management and operations, disciplined monetization to maximize exit value, and selective reinvestment into growth areas (including AI/digital initiatives and power/data center enablement).