ComfortDelGro - UOB Kay Hian 2026-05-14: 1Q26 Earnings Disappoint; Downgrade To HOLD

• ComfortDelGro (SGX:C52) reported lower 1Q26 core operating profit (-18% y-o-y) and core PATMI (-16% y-o-y) despite higher revenue (+5% y-o-y). Revenue was in line at 23% of our full-year estimate, but core operating profit and PATMI both formed only 17% and were significantly below our and consensus expectations.

Earnings below expectations.

• - Read this at SGinvestors.io -
• VICOM (SGX:WJP) delivered a strong beat on ERP 2.0 on-board units (OBU) installation volumes, while public transport remained stable.

Public transport: Fare hikes and contract wins keep the lights on…

• 1Q26 segmental revenue of S$814.5m (+7% y-o-y) and operating profit of S$37.7m (+3% y-o-y) were in line with our expectations, with operating margin of 4.6% (-0.2ppt y-o-y).
• - Read this at SGinvestors.io -
• Metroline (UK London buses) showed improving profitability as previously renewed contracts at better margins flowed through.
• Singapore geography operating profit was S$45.6m (69% of operating profit) and UK/EU was S$9.9m (15%), with the UK shortfall partly due to softer non-bus operations.

…but Tampines loss and Serangoon tender outcome are near-term swing factors.

• Read more at SGinvestors.io.

Heidi Mo UOB Kay Hian Research | Kai Jie Tang UOB Kay Hian Research | https://research.uobkayhian.com/ 2026-05-14

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