Seatrium FY2025 Results: Strong Financial Growth, Doubling Net Profit, and Proposed 3.0 Cents Final Dividend for 2026

Seatrium Limited FY2025 Financial Results: Robust Growth and Stronger Outlook

Seatrium Limited has released its FY2025 financial results, demonstrating substantial growth in revenue, profitability, and operational efficiency. The company’s strategic focus on higher-margin projects, cost optimization, and a robust order book positions it well for future growth. Below, we break down the key metrics, trends, and strategic actions highlighted in the report.

Key Financial Metrics and Performance Table

Metric	FY2025	FY2024	FY2023	YoY Change (FY25/FY24)	YoY Change (FY24/FY23)
Revenue (S\$B)	11.5	9.2	7.3	+24%	+26%
Net Profit (S\$M)	324	157	-2,017	+106%	NM*
Gross Margin (%)	7.4	3.1	-2.9	+430 bps	+600 bps
Free Cash Flow (S\$M)	443	218	97	+103%	+125%
Proposed Final Dividend (cents/share)	3.0	1.5	–	+100%	–
Return on Equity (ROE)	4.9%	2.5%	–	+2.4pp	–
Total Shareholder Return (TSR)	5.2%	Negative	–	Positive turnaround	–

*NM = Not meaningful due to negative base year.

Historical Performance Trends

Revenue: Continued robust YoY growth, up 24% in FY2025 and 26% in FY2024, driven mainly by execution of higher-margin FPSO and offshore wind projects.
Net Profit: Rebounded strongly post-legacy losses (FY2023) with more than doubling in FY2025, reflecting margin expansion and operational efficiency.
Gross Margin: Expanded from 3.1% to 7.4% in FY2025, attributed to a favorable project mix and successful cost optimization.
Free Cash Flow: More than doubled YoY, reflecting strong underlying cash generation from operations as well as milestone payments.

Chairman’s Statement and Tone

“Delivered robust financial performance & improving shareholder value. Robust revenue growth and doubled net profit. Focused execution and rigorous risk management. Positive 1-year Total Shareholder Returns of 5.2%…”

The tone is clearly positive, emphasizing operational execution, risk management, and tangible returns to shareholders.

Dividends and Share Buyback Activity

Final cash dividend proposed: 3.0 cents/share for FY2025, double the previous year’s 1.5 cents/share, reflecting increased profitability.
Share buybacks: S\$58 million worth of shares repurchased and held as treasury shares as at 31 Dec 2025.

Divestments & Asset Monetization

Divestment of non-core assets and yards (Amfels, Batangas, Crescent, Karimun) ongoing, with over S\$330M of cash unlocked and over S\$100M in annualized cost savings targeted.
Further S\$200M of assets earmarked for divestment by FY2028.

Exceptional Items and Legacy Issues

One-off payments related to the Operation Car Wash settlement (S\$172M) and P-52 project (S\$126M) affected cash flow, but underlying operating cash flow remains strong.
Provision for legacy projects partially offset operational gains, but the overall impact is diminishing as the order book transitions to higher-quality projects.

Order Book and Pipeline

New Orders Secured: >S\$4B in FY2025, in a challenging environment.
Net Order Book: S\$17.8B, providing >1.5x revenue coverage versus FY2025.
Pipeline Opportunities: >S\$32B, with a focus on FPSOs, Offshore Wind, and HVDC platforms.
~95% of the order book consists of Series-Build projects, providing earnings visibility and reduced risk.

Balance Sheet and Capital Management

Net Leverage Ratio: Reduced to 0.8x from 1.1x in FY2024; Net gearing steady at 0.1x.
Cost of Debt: Lowered to 3.4% (from 4.9%), reflecting improved credit profile and active refinancing.
Liquidity: S\$3.1B in available cash and undrawn committed facilities.

Events and Macroeconomic Factors

Resolution of legacy legal cases (Operation Car Wash) through settlement and agreements.
Supply chain and market uncertainties noted, but underlying demand for deepwater oil & gas and offshore wind projects remains strong.
No mention of natural disasters or tax policy changes directly affecting FY2025 results.

Outlook and Forward Guidance

Management expects continued strength, with a high-quality order book and expanding margins from Series-Build projects.
Ongoing cost optimization and divestments expected to further enhance profitability and cash flow.
Well-positioned to capitalize on the global energy transition, especially in offshore wind and gas-related projects.

Conclusion and Investor Recommendations

Seatrium Limited’s FY2025 results reflect a strong operational and financial turnaround, with robust revenue and net profit growth, expanding margins, improved cash generation, and a solid order book underpinning future results. The company’s focus on cost discipline, asset optimization, and shareholder returns (via higher dividends and buybacks) enhances its attractiveness to investors.

If you are currently holding Seatrium shares: The outlook appears strong, with management execution supporting further margin and earnings growth. Continue to hold, as the positive momentum and improving fundamentals provide good potential for further capital appreciation and dividend income.
If you are not currently holding Seatrium shares: Consider accumulating on pullbacks. The combination of operational turnaround, strong order book, and capital returns makes Seatrium an increasingly attractive investment in the energy and offshore engineering space.

Disclaimer: This analysis is based solely on the information contained in the FY2025 financial report. It does not constitute financial advice. Investors should consider their own investment objectives and risk tolerance before making any investment decisions.