Boustead Singapore Limited: 1H FY2026 Financial Review

Boustead Singapore Limited (SGX:F9D) has released its unaudited interim financial statements for the six months ended 30 September 2025 (1H FY2026). As Singapore’s oldest continuous business organisation, Boustead operates across infrastructure engineering, real estate solutions, geospatial technology, and healthcare. We analyse the latest financial results and business developments to provide investors with a clear view on the company’s performance and outlook.

Key Financial Metrics and YoY/QoQ Comparison

Historical Performance and Trends

The Group’s revenue has remained steady YoY, with a marginal decrease of 0.4%. Gross profit and net profit declined by 5% and 3% respectively, reflecting contracting margins and higher expenses. EPS fell to 7.1 cents compared to 7.5 cents a year ago. Net asset value per share also saw a slight reduction from 118.3 cents to 117.9 cents.

Divisional Review

• Geospatial: Revenue grew 10% to \$118.7m, driven by multi-year subscription contracts in Australia and Singapore. Operating profit rose 19% to \$26.1m.
• Real Estate Solutions: Revenue declined 9% YoY, mainly due to slower revenue recognition as more projects were in earlier stages. Operating profit fell 6% to \$13.6m.
• Energy Engineering: Revenue slipped 1% to \$74.3m, with operating profit falling sharply by 57% to \$5.2m, reflecting margin compression and lower business activity.
• Healthcare: Revenue dropped 24% to \$5.2m, mainly due to the absence of a one-off turnkey contract from the previous year. Operating profit swung to a \$0.4m loss from a \$0.2m profit.

Cash Flow and Financial Position

Net cash outflows from operating activities totaled \$19.8m, with negative working capital swings. Investing activities used \$9.1m, mainly for joint venture investments and asset purchases. Financing activities provided \$11.9m, reflecting new borrowings and dividend payments. Cash and cash equivalents decreased to \$313.9m, but the company maintains a healthy net liquid position of \$210.3m (41.7 cents per share).

Corporate Actions & Asset Divestments

• The Group is pursuing the listing of UI Boustead REIT and divestment of several logistics and industrial assets into the REIT, aiming to unlock value and recycle capital for growth.
• Several new subsidiaries were incorporated, but none are expected to materially affect earnings or net asset value.
• BP-Braddell LLP was liquidated, resulting in a \$310k gain.
• Share capital increased from scrip dividend issuance; treasury shares remain at 4.5% of issued shares.

Exceptional Items and Related Party Transactions

• Share of loss from associates and joint ventures improved dramatically due to reversal of a \$7.0m landowner fee liability.
• Other losses narrowed to \$0.5m, mainly due to reduced currency exchange losses and disposal gains.
• Related-party transactions are routine and not considered interested person transactions.

Dividend Policy and Payments

The Board declared an interim cash dividend of 1.5 cents per share, unchanged from the previous year. Final and special dividends for the prior year were paid, partly via the scrip dividend scheme.

Chairman’s Statement and Tone

“On behalf of the Board of Directors of the Company, we, the undersigned, hereby confirm to the best of our knowledge that nothing has come to the attention of the Board of Directors of the Company which may render the financial statements for the six months ended 30 September 2025 to be false or misleading in any material aspect.”
– Wong Fong Fui, Chairman; Wong Yu Loon, Director (10 November 2025)

The tone is neutral and factual, with no overt optimism or pessimism.

Outlook and Forecasted Events

• Engineering order backlog stands at \$396m, supporting future revenue streams.
• Business conditions remain challenging, but the Group continues to secure substantial new contracts, including a >\$100m project in November 2025.
• The proposed REIT listing, if completed, should unlock market value of the Group’s real estate portfolio and support capital recycling.
• The Group expects to deliver satisfactory results in FY2026 barring unforeseen disruptions.

Conclusion & Investment Recommendations

Overall, Boustead Singapore’s financial performance for 1H FY2026 is resilient but not exciting, with stable revenue, slightly lower profitability, and a healthy financial position. The Group is taking strategic steps to unlock asset value and maintain dividends, though margin pressures and sluggish project progress are evident.

• If you currently hold Boustead Singapore shares: Maintain your position. The company’s fundamentals remain sound, dividends are stable, and strategic initiatives (REIT listing, new contracts) may unlock further value. Watch for sustained margin pressure or any delay in asset monetisation.
• If you are not currently holding Boustead Singapore shares: Consider a cautious entry if you seek exposure to a well-diversified engineering and real estate group with defensive qualities and stable dividends. However, be aware that upside may be limited unless margin and project momentum recover.

Disclaimer: This analysis is based strictly on information provided in the company’s interim financial report and does not constitute investment advice. Investors should consider their own risk profile and consult professional advisors before making investment decisions.

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