Penguin International Limited FY2025 Financial Analysis: Record Revenue But Flat Profit Growth

Peguin International Limited, a Singapore-based global leader in high-speed aluminium commercial craft, has released its condensed interim financial statements for the year ended 31 December 2025. The Group operates across vessel chartering, shipbuilding, ship repair, and maintenance, and is marking its 50th anniversary in 2026.

Key Financial Metrics

• FY2025 Revenue: \$266.97 million (up 13.2% YoY)
• FY2025 Net Profit After Tax: \$35.47 million (flat YoY, -0.2%)
• 2H2025 Revenue: \$144.93 million (down 17.6% YoY)
• 2H2025 Net Profit After Tax: \$28.45 million (down 12.8% YoY)
• EPS (Full Year): 16.11 cents (16.14 cents in FY2024)
• Proposed Final Dividend: 5.0 cents per share (up from 4.84 cents)
• Net Asset Value Per Share: 131.33 cents (110.23 cents in FY2024)
• Cash and Cash Equivalents (End FY2025): \$30.75 million (up from \$26.42 million)

Quarterly and Yearly Financial Comparison

Historical Performance Trends

The Group achieved record annual revenue in FY2025, driven primarily by a 46.6% rise in vessel chartering revenue and a 4.6% increase in shipbuilding, ship repair, and maintenance revenue. However, despite the revenue growth, net profit after tax was flat year-on-year, impacted by higher costs, including a significant swing from foreign exchange gain to loss and increased administrative expenses.

Gross profit margin declined in 2H2025 as stock vessel sales slowed, partially offset by stronger chartering activities. Net asset value per share rose from 110.23 cents to 131.33 cents, reflecting the company’s expanding asset base and retained earnings.

Dividends

• Proposed Final Dividend FY2025: 5.0 cents per share (total payout: \$11.0 million)
• Final Dividend FY2024: 4.84 cents per share (total payout: \$10.66 million)

The dividend increase reflects management’s confidence, despite flat profits.

Exceptional Earnings and Expenses

• Other Income: Rose sharply to \$14.94 million in FY2025 (from \$7.89 million), largely due to gains on vessel sales.
• Foreign Exchange Impact: FY2025 saw a net forex loss of \$4.74 million (vs. a gain of \$2.02 million in FY2024), significantly impacting operating expenses.
• Administrative Expenses: Up 15% YoY due to higher personnel costs and increased activity.

Asset Sales and Investments

• Sale of Property, Plant & Equipment: \$33.39 million in proceeds, primarily from vessel disposals.
• Capex: \$49.28 million invested in new property, plant, and equipment, mainly for fleet expansion.
• Quoted Investments: \$40.8 million (up from \$13.1 million in FY2024) in Singapore-listed Marco Polo Marine Limited.

Management Statement & Outlook

“As Penguin marks its 50th anniversary in 2026, the company stands before you as a global brand leader in the design, construction, ownership and operation of high-speed aluminium commercial craft.

“While our shipbuilding and chartering outlook appear healthy, we are always mindful of possible headwinds, such as inflationary pressures, supply chain disruptions and geopolitical uncertainties.”

The tone of the statement is positive but cautious, highlighting long-term growth opportunities, strong client relationships, and leadership in multiple market segments, while acknowledging potential macroeconomic headwinds.

Industry and Business Outlook

• Oil & Gas/Maritime Security: Strong demand, especially in the Middle East and Africa, driven by mega-gas developments and security concerns.
• Offshore Wind: Recovery expected in 2026 with a record contract for 8 hybrid-ready CTVs for Northern Offshore Services.
• Tourism/Decarbonisation: European tourism growth and green shipping initiatives present new opportunities.
• Government Projects: Sustained enquiries expected for specialised craft.
• Risks: Inflation, supply chain disruptions, and geopolitical tensions remain as key concerns.

Other Notable Items

• No share buybacks, placements, or mandates disclosed.
• No significant related-party transactions or divestments reported.
• Directors’ remuneration not disclosed.
• No major legal or regulatory issues, fundraisings, or asset revaluations reported.

Conclusion and Investment Recommendation

Overall, Penguin International delivered record revenue in FY2025, driven by strong growth in vessel chartering and steady gains in shipbuilding. However, profit growth was held back by rising costs and significant forex losses. The company remains well-capitalized, with a robust balance sheet and an increased dividend, but faces macroeconomic and operational risks in 2026.

• If you are currently holding the stock: Consider maintaining your position. The company’s strong order book, diverse revenue streams, and prudent management bode well for long-term growth, though monitor for margin pressure and macro risks. The increased dividend adds to total return.
• If you are not currently holding the stock: Consider accumulating on dips if you seek exposure to the global shipbuilding and maritime services sector, but be mindful of potential short-term volatility due to external risks and cost inflation. The company’s track record, market leadership, and repeat clientele support a long-term growth thesis.

Disclaimer: This analysis is based solely on information disclosed in the FY2025 financial report. It does not constitute financial advice or a solicitation to buy or sell securities. Investors should conduct their own due diligence and consider their risk tolerance before making investment decisions.

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