Keppel Ltd. FY2025 Financial Results: Robust Growth and Strategic Transformation
Keppel Ltd. delivered a strong set of results for the financial year ended 2025, highlighting robust earnings, rapid asset monetisation, and solid progress in its asset-light transformation. This analysis reviews the key financial metrics, dividend proposals, historical performance, and notable strategic actions disclosed in the company’s latest report.
Key Financial Metrics: Year-on-Year and Half-Yearly Comparison
| Metric |
2H 2025 |
2H 2024 |
FY 2025 |
FY 2024 |
YoY Change |
HoH Change |
| Revenue |
\$3,312m |
\$2,962m |
\$5,983m |
\$5,784m |
+3% |
+12% |
| Operating Profit |
\$521m |
\$677m |
\$1,122m |
\$1,145m |
-2% |
-23% |
| EBITDA |
\$1,022m |
\$856m |
\$1,791m |
\$1,451m |
+23% |
+19% |
| Net Profit |
\$411m |
\$636m |
\$789m |
\$940m |
-16% |
-35% |
| EPS (cents) |
22.7 |
35.4 |
43.5 |
52.3 |
-17% |
-36% |
| Total Dividend / Share |
– |
– |
~\$0.47 |
\$0.34 |
+38% |
– |
Segmental Performance
- Infrastructure: Net profit increased by 18% YoY to \$803m, driven by higher contributions from decarbonisation and sustainability solutions, and valuation gains.
- Real Estate: Net profit jumped 155% YoY to \$273m, with higher acquisition fees, fair value gains, and divestment gains.
- Connectivity: Net profit rose 17% YoY to \$175m, supported by higher asset management revenue and operating income.
Dividends and Shareholder Returns
Keppel proposed a total dividend of approximately \$0.47 per share for FY2025, up 38% from \$0.34 in FY2024. This includes:
- Interim cash dividend: \$0.15/share (paid)
- Proposed final cash dividend: \$0.19/share
- Special cash dividend: \$0.02/share
- Proposed dividend in-specie: one Keppel REIT unit for every nine Keppel shares (equivalent to ~\$0.11/share)
A share buyback programme was also launched in July 2025, resulting in 13.2 million shares (\$116m) repurchased in 2H25.
Asset Monetisation and Strategic Initiatives
- Asset Monetisation: \$2.9 billion in transactions announced in 2025, with \$14.5 billion completed since the start of the programme in October 2020. The company targets to substantially monetise its \$13.5 billion non-core portfolio by 2030.
- Major Divestments in 2025: Proposed sale of M1’s telco business (\$1.3 billion), asset sales across Singapore, China, India, and Vietnam, and divestments in digital infrastructure.
- Funds Under Management (FUM): Grew to \$95 billion by end-2025, up from \$88 billion in 2024. Asset management fees rose to \$453 million, a 20% CAGR since 2020.
- ROE and Debt: New Keppel’s ROE improved to 18.7% (from 14.9%), and net debt to EBITDA fell to 2.0x (from 2.3x).
Exceptional Items and Discontinued Operations
- M1 Telco Sale: An accounting loss of \$222 million was recognised related to the proposed sale of M1’s telco business, presented as discontinued operations.
- Non-Core Portfolio Loss: Net loss of \$84 million in 2025 versus a \$6 million loss in 2024, mainly due to impairments on legacy O&M assets.
Chairman’s Statement
“New Keppel delivered strong performance in FY25, underpinned by solid earnings growth and continued momentum in asset monetisation. The market increasingly recognises Keppel as a global asset manager & operator and has continued re-rating the Company as we execute our growth strategy. Strong confidence in New Keppel’s growth trajectory and committed to delivering strong returns to our LPs and shareholders. Rewarding shareholders: Ordinary dividends based on the New Keppel’s performance and special dividends based on 10-15% of asset monetisation completed in the financial year, until monetisation programme is completed.”
The tone is distinctly positive, reflecting confidence in the company’s strategy and outlook.
Notable Events and Corporate Actions
- Ongoing asset monetisation, including divestments of non-core property and infrastructure assets across Asia.
- Launch of new funds (e.g., Data Centre Fund III, Education Asset Fund II).
- Active capital recycling and redeployment of capital into strategic growth areas.
- Significant share buyback programme initiated in July 2025.
- No material legal, regulatory, or environmental events were flagged.
Historical Performance Trends
- Recurring income grew 21% YoY to \$941m in FY25.
- Asset management fees and FUM registered strong CAGRs (20-21%) over the last five years.
- Asset monetisation gains have been consistently realised since 2020, accelerating in recent years.
Conclusion and Investment Recommendations
Overall Assessment: Keppel’s FY2025 results demonstrate a strong financial and strategic position, anchored by robust recurring earnings, increased dividends, and disciplined asset monetisation. The company is successfully transforming into a global asset manager and operator, with positive momentum in asset-light growth areas (infrastructure, real estate, connectivity) and a clear roadmap for monetising non-core assets.
For Current Holders: The outlook appears strong, with continued growth in recurring earnings, rising dividends, and ongoing capital returns (including share buybacks and special dividends). Investors holding the stock may consider maintaining or adding to their position, given the management’s demonstrated execution and shareholder reward policy.
For Prospective Investors: With Keppel’s strong fundamentals, visible asset monetisation pipeline, and growing asset management platform, the company presents a compelling long-term investment opportunity. New investors may consider accumulating the stock, especially on any market weakness, as the transformation story continues to unfold.
Disclaimer: This article reflects a summary and analysis of Keppel Ltd.’s FY2025 results based solely on company disclosures. It does not constitute financial advice. Please consult with your professional adviser and consider your investment objectives and risk tolerance before making any portfolio decisions.
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