- ComfortDelGro (SGX:C52)'s 1Q26 revenue/PATMI were below expectations at 22%/19% of our FY26e forecast. Underlying PATMI in 1Q26 fell 16% y-o-y to S$40.5mil. The largest drag to earnings was the 45% y-o-y collapse in operating earnings to S$17.5mil.
- - Read this at SGinvestors.io -
- Disruption to Middle East airlines’ airport transfer bookings in the UK.
The Positive
Improving margins of London bus contracts.
- Metroline London contract margins continue to improve. It was not particularly impactful in 1Q26 results, with UK and public transport margins down y-o-y.
The Negative
Taxi earnings decline intensifies.
- - Read this at SGinvestors.io -
Outlook
- It will be a challenging environment for ComfortDelGro, especially with the recent jump in fuel prices. Fuel prices are largely a pass-through (with a lag) for the public transport operation and borne by taxi drivers. The falling taxi fleet will persist particularly with the intense competition.
- Gross CAPEX will decline by around $200mil to S$500mil in FY26 in the absence of the Metroline Manchester investments.
Downgrade to NEUTRAL with lower target price of S$1.35
- Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
Paul Chew Phillip Securities Research | https://www.poems.com.sg/ 2026-05-14
Previous report by Phillip:
2026-03-04 ComfortDelGro - Worsening Decline In Taxi Fleet.
Price targets by 5 other brokers at ComfortDelGro Target Prices.
Listing of research reports at ComfortDelGro Analyst Reports.
Relevant links:
ComfortDelGro Share Price History,
ComfortDelGro Announcements,
ComfortDelGro Dividend Payout Dates & Corporate Actions,
ComfortDelGro News
