Keppel Delivers Robust 9M25 Results: Accelerates Asset Monetisation, Announces Shareholder Rewards, and Signals Strategic Transformation

Keppel Ltd has released its 9M 2025 business update, unveiling a slew of strong financial results, strategic divestments, and significant shareholder rewards that could meaningfully impact its share price and investor sentiment.

Key Financial Highlights

• Net Profit Surge: “New Keppel” (excluding the Non-Core Portfolio for Divestment and Discontinued Operations) achieved over 25% earnings growth year-on-year for 9M25, with improvements seen across all core business segments.
• Overall Net Profit Growth: Even after including an accounting loss from the proposed divestment of M1’s telco business, Keppel’s overall net profit rose by over 5% year-on-year in 9M25. Notably, the Non-Core Portfolio for Divestment returned to profitability.
• Recurring Income: Grew nearly 15% year-on-year, driven by higher contributions from both asset management and operating income.

Asset Monetisation and Portfolio Transformation

• Asset Monetisation: Keppel announced approximately \$2.4 billion in asset monetisation for 9M25, including the proposed divestment of M1’s telco business. The company is targeting another over \$500 million of deals in the coming months.
• Total Monetisation Since October 2020: Keppel has achieved \$14.0 billion in asset monetisation, including \$4.7 billion from the Keppel Offshore & Marine (O&M) divestment in 2023 and \$1.3 billion from the proposed sale of M1’s telco business announced in August 2025.
• Case Study – 800 Super: The divestment values the company at over \$600 million enterprise value, with Keppel’s 40.5% stake monetised for \$184 million. Since acquisition, the asset has delivered 20% EBITDA growth, mid-teens IRR, and capital gains amounting to half of invested capital.

Accelerated Fundraising and Asset Management

• Funds Under Management (FUM): Raised \$6.7 billion in FUM across private funds in 9M25, with further accretion of \$1.4 billion expected from recent acquisitions (Tokyo Data Centre 3, Top Ryde City Shopping Centre, and Global Marine Group).
• Equity Raised: \$2.7 billion in equity raised during 9M25.
• Acquisitions & Divestments: \$7.6 billion in acquisitions and divestments completed in the same period.
• Asset Management Fees: \$299 million in fees collected in 9M25.
• Upcoming Fund Launch: Aermont Fund VI marketing underway, with the first close expected around 1Q26.

Operational Execution and Business Expansion

• Power & Infrastructure:
  • Keppel Sakra Cogen Plant (600 MW) to commence operations in 1H26, with capacity substantially contracted.
  • Hong Kong Integrated Waste Management Facility (IWMF) is 93% complete, with a 15-year O&M contract contributing to recurring income from 2026.
  • Tuas Nexus IWMF is 79% complete, approaching testing and commissioning.
  • Over \$6.8 billion in revenue secured under long-term contract (10-15 years), with 67% of power capacity contracted for three years or longer.
  • Targeting year-on-year EBITDA growth in 2025, supported by growing decarbonisation and sustainability solutions.
• Digital Connectivity:
  • Bifrost subsea cable system (20,000 km) achieved ‘Ready for Service’ status on 1 Oct 2025; IRU recognition and O&M fees to start in 4Q25.
  • Floating Data Centre project advancing, with environmental approvals in place and construction targeted for 1Q26 and completion by 2028.
  • Significant momentum in ICT Services, leveraging partnerships with AWS, Dell, Google, Microsoft, and NVIDIA to drive digital transformation in ASEAN.
• Proposed Divestment of M1’s Telco Business:
  • Keppel expects to unlock close to \$1 billion in cash (final amount subject to completion adjustments) from the proposed sale.
  • Completion targeted by year-end, pending regulatory approval. Legal proceedings with Liberty Wireless are not expected to delay or affect the transaction.

Significant Shareholder Returns and Dividend Policy Update

• Cash Returns: In 9M25, Keppel returned \$617 million to shareholders through cash dividends and repurchased \$92.6 million worth of shares as part of its new \$500 million Share Buyback Programme.
• Ongoing Commitment: Keppel has returned a total of \$6.6 billion to shareholders (cash and in-specie distributions) since the start of 2022.
• Dividend Policy Update: The company announced that dividend payout will henceforth be based on New Keppel’s annual net profit. Additionally, part of the cash unlocked from asset monetisation will be distributed to shareholders.
• Total Shareholder Return (TSR): Keppel delivered a robust annualised TSR of 38.0% from 1 Jan 2022 to 30 Sep 2025, outperforming the Straits Times Index (STI), which returned 14.5% over the same period.

Divisional Updates

• Infrastructure:
  • Tender pipeline of ~\$11 billion across waste, water, and Energy-as-a-Service (EaaS) projects.
  • Secured new EaaS contracts across Asia; book-to-bill ratio at 3.5x.
  • Progressing studies for renewable energy imports and low/zero-carbon ammonia projects in Singapore.
• Real Estate:
  • Monetised \$830 million of real estate assets in 9M25.
  • Implementing Sustainable Urban Renewal solutions across four projects totaling \$1.3 billion in asset value.
  • Active landbank of over 30,000 residential units and a commercial portfolio of 1.56 million sqm across Asia-Pacific.
  • Notable transaction: Tianjin Eco-City land sale to contribute RMB 40 million profit in 4Q25.
• Connectivity:
  • Keppel DC REIT owns 25 data centre assets (\$5.7 billion valuation); Keppel and private funds own/develop another 14 assets (\$2.6 billion valuation).

Key Takeaways for Shareholders and Potential Share Price Impact

• The proposed divestment of M1’s telco business and continued asset monetisation could unlock substantial cash, directly benefiting shareholders through enhanced dividends and buybacks.
• Keppel’s strategic transformation into an asset-light global asset manager and operator is being recognised by the market, as reflected in its TSR outperformance and re-rating potential.
• The updated dividend policy, tying payouts directly to net profit and asset monetisation, signals a commitment to sustainable and growing shareholder returns.
• Operational and fundraising milestones, including the upcoming launches and completions in power, data connectivity, and infrastructure, bolster recurring income and earnings visibility.
• Given the scope of strategic divestments, capital returns, and recurring earnings growth, these developments are likely to be price sensitive and could drive further share price appreciation as Keppel executes on its growth strategy.

Conclusion

Keppel’s 9M25 business update demonstrates a disciplined and ambitious approach to value creation and capital management. With a clear focus on recurring income, asset-light growth, and substantial returns to shareholders, Keppel is firmly positioning itself as a leading global asset manager and operator. Investors should closely monitor the progress of the M1 divestment, continued asset monetisation, and execution of strategic initiatives, as these are likely to be key catalysts for future share price performance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research and consult with professional advisors before making investment decisions. Past performance is not indicative of future results. All monetary values refer to Singapore dollars unless otherwise stated.

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