Seatrium (SGX:5E2) reported a 24.3% increase in FY25 revenue to S$11.5b, with oil & gas and offshore wind projects being the heaviest weightlifters.
Gross profit close to tripled to S$847.6m, as improved operating leverage and an increased proportion of higher-margin projects supported a 4.3 percentage point (ppt) expansion in margins to 7.4%. EBITDA came in 34% higher at 837m.
FY25 basic earnings per share (EPS) of 9.56 cents came in ahead of our and consensus’s expectations.
Seatrium secured more than S$4b of new orders during the year, bringing its net order book to S$17.8b as at 31 Dec 2025.
Going forward, conversion of a S$32b pipeline into order wins remains critical for the company, in our view. The bulk of legacy projects in the US have also been flushed out of Seatrium’s order book, boding well for gross margin expansion.
Ongoing divestments and monetisation have unlocked S$50m of annualised cost savings and S$230m of gains thus far, with more to come.
Read more at SGinvestors.io.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
