ComfortDelGro (SGX:C52)'s FY25 revenue exceeded S$5bn (+13% y-o-y) for the first time, reflecting scale benefits from a larger overseas contract base.
PATMI was S$230m (+9% y-o-y), 6% below our estimate, and was driven by stronger London bus margins, Manchester contract, full-year Addison Lee contribution, and peak ERP 2.0 OBU installations.
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FY25 PATMI was below expectations.
Singapore Public Transport (PT) remains a headwind with Tampines roll-off from July 2026.
VICOM (SGX:WJP)’s on-board unit (OBU) tailwind should also fade in 2026. Offsetting this, overseas momentum is building on UK bus renewals at higher margins, the Manchester ramp, and full-year Stockholm contribution in 2026.
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Public transport.
Singapore profitability is pressured by the Jurong West bus package loss, with another step-down likely as Tampines hands over from July 2026. Rail fare hikes from Dec 2025 offer limited relief given the variable licence charge framework capping rail EBIT.
ComfortDelGro remains active in bus tenders and the Jurong Regional Line is on track to enter service in 2027.
UK/EU growth will be underpinned by London renewals at double-digit margins, the Manchester ramp up and full-year Stockholm E40 in 2026.
Australia/New Zealand should benefit from easing driver shortages, full-year Victoria contributions in 2026, and Auckland rail expansion from 2H26.
Taxi & private hire remains mixed.
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Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
