CSE Global 3Q2025 Interim Business Update: Key Highlights & Investor Insights

Robust Revenue Growth Driven by Electrification Projects

CSE Global delivered a strong financial performance in the third quarter of 2025, posting a 20.5% year-on-year increase in revenue to S\$257.7 million. The standout driver of this growth was the Electrification segment, which saw a remarkable 39.9% surge in revenue to S\$146.7 million. This growth was primarily attributed to the progressive recognition of revenue from two major electrification-related projects in the Americas region, secured in 2024.

The Communications segment remained stable, with revenue of S\$61.7 million—a slight dip of 0.2% year-on-year due to foreign exchange headwinds. However, on a constant currency basis, Communications would have registered a 4.6% increase. The Automation segment also contributed positively, with a 4.4% rise in revenue to S\$49.4 million, driven by higher technology and integrated systems solutions in the Americas.

Order Intake Declines; Order Book Remains Healthy

Notably, order intake for 3Q2025 fell sharply by 21.7% to S\$146.1 million, largely due to the absence of major electrification and greenfield automation orders that boosted the prior year’s figures. Electrification order intake dropped 38.7%, and Automation plummeted 52.1%. However, Communications order intake jumped 24.2%, powered by recent acquisitions expanding the business into the USA.

The group’s order book stood at S\$467.5 million as of 30 September 2025, reflecting a solid pipeline despite the quarterly dip in new orders. This provides visibility for future revenue and underlying business stability.

Strategic Transaction with Amazon: Major Price-Sensitive News

Potentially market-moving development: On 10 November 2025, CSE Global entered into a strategic transaction with Amazon.com, Inc. Amazon is granted the right to acquire up to 62,968,580 CSE shares through 2030. This agreement not only strengthens the commercial relationship between CSE and Amazon but also unlocks significant data-centre business opportunities. Given the scale of the share acquisition option and Amazon’s industry stature, this transaction could have a material impact on CSE’s share value and future growth prospects.

• This transaction signals Amazon’s confidence in CSE’s capabilities and its commitment to the data-centre sector.
• The move is likely to attract investor attention and potentially support a re-rating of CSE shares, given the strategic nature and growth potential tied to data-centre expansion.
• Shareholders should closely monitor further disclosures and developments regarding this partnership, as it may directly influence market sentiment and valuation.

Strategic Business Positioning: Electrification, Communications, and Automation

CSE continues to focus on two core growth areas: Electrification and Communications, particularly targeting the burgeoning data-centre market. Strategic initiatives include:

• Securing new industrial space (241,000 sqft) and purchasing land for future expansion in Electrification.
• Strengthening its position in data-centres and reducing exposure to renewables and municipal markets.
• Expanding Communications footprint in the USA and Australia, with a focus on critical communications solutions.
• Maintaining focus on traditional automation business.

These moves align CSE with global megatrends such as urbanisation, electrification, decarbonisation, and artificial intelligence—each presenting significant long-term growth opportunities.

Growth Drivers and Market Outlook

CSE is well positioned to capitalise on rising demand for data-centres, urbanisation, and the global shift towards electrification and decarbonisation. Industry research highlights rapid market expansion:

• Electrification: Expected to reach US\$209.01 billion by 2034, CAGR of 9% (2024-2034).
• AI: Global market CAGR of 27.7% (2025-2030).
• Urbanisation: 70% of global population projected to live in cities by 2050.

CSE’s focus on engineering capabilities and technology solutions aims to leverage these trends for sustainable, differentiated growth.

Risks and Market Uncertainties

Despite its robust performance and strategic positioning, CSE faces ongoing risks from global economic uncertainties and inflationary pressures. Investors should be aware that projections and forward-looking statements in this update are subject to change based on macroeconomic conditions and competitive dynamics.

Conclusion: Key Takeaways for Investors

• Strong revenue growth, primarily driven by electrification projects.
• Healthy order book supports forward visibility, though recent order intake has softened.
• Strategic transaction with Amazon is highly price-sensitive and could materially affect share value and future business prospects.
• Active alignment with global megatrends enhances long-term growth potential.
• Management is executing on expansion and capability-building strategies, particularly in data-centres and communications.

Investors should closely monitor further updates regarding the Amazon transaction, as well as developments in the company’s strategic expansion initiatives, which could drive future share price movements.

Disclaimer: This article is based on publicly available information and company disclosures as of 19 November 2025. It does not constitute investment advice or a recommendation to buy or sell securities. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially.

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