Keppel Ltd. 2026 AGM Highlights: Financial Performance, Dividends, Asset Management Growth, and Leadership Transition

Keppel Ltd. 2026 AGM: Key Highlights and Investor Insights

Strong Performance in 2025 and Transformation Progress

Keppel Ltd. reported a transformative year in 2025, with the company making significant strides as a global asset manager and operator. The New Keppel segment achieved a 39% year-on-year increase in net profit to \$1.1 billion, led by improvements across all business segments and record earnings from the Infrastructure Division. Recurring income from asset management and operations jumped 21% to \$941 million. However, including the non-core portfolio and discontinued operations, overall net profit declined to \$789 million, mainly due to an accounting loss related to the proposed sale of M1’s telco business.

Funds under management (FUM) grew to \$95 billion, and asset management net profit increased by 15%. Keppel announced \$2.9 billion in asset divestments in 2025, bringing cumulative monetisation since October 2020 to \$14.5 billion. The company aims to monetize an additional \$13.5 billion of non-core assets by 2030. Keppel’s streamlined, asset-light model is positioned to seize opportunities in energy transition, digitalisation, and AI, with improved financial metrics, higher return on equity, and healthy net debt position.

Shareholder Returns and Dividends

Keppel delivered an impressive total shareholder return of 58.5% in 2025. Progress has been made under its share buyback programme, and the Board has proposed both ordinary and special dividends, resulting in a higher total dividend distribution for FY2025 compared to the prior year. The AGM approved a final tax-exempt (one-tier) dividend of 19.0 cents per share and a special dividend (details in Appendix 3 to the AGM Notice).

Asset Management Momentum and Strategic Growth Initiatives

The asset management business continues to gain momentum, with strong growth in fees and FUM, supported by increasing recognition from global limited partners. Long-term macro trends such as energy transition, digitalisation, and AI are expected to drive demand for alternative real assets.

The Infrastructure Division saw record earnings, robust performance in integrated power, progress at Sakra Cogen Plant, growth in decarbonisation and sustainability solutions, and strategic investments in connectivity and data centre infrastructure. Notably, the Bifrost Cable System commenced commercial operations, with performance exceeding design specs and increased interest from hyperscalers amid geopolitical developments. Keppel is in active discussions with potential customers for two remaining fibre pairs, with updates expected soon.

Private Credit Funds and Risk Management

Keppel’s private credit fund series (now in Fund III) invests in asset-backed infrastructure assets with long-term contracts, reducing volatility. Funds I and II met their target returns, and institutional investor interest remains strong. Unlike some US funds, Keppel’s private credit funds are closed-ended and focus on lower-risk asset-backed investments.

Data Centre and Digital Infrastructure Innovation

Demand for data centres continues to rise, fueled by digitalisation and AI. While rising energy costs are a concern, the impact in Singapore is limited due to its hub status and tight supply. Keppel is advancing its floating data centre project, which is fully pre-committed to a major hyperscaler. The floating solution uses seawater for cooling, reducing reliance on potable water and addressing a key sustainability concern.

Education Fund and Aermont Acquisition

Keppel’s education fund outperformed expectations, supporting the launch of a larger subsequent fund. The fund invests in student housing and schools, demonstrating resilience through economic cycles. The Aermont acquisition has exceeded underwriting assumptions, contributing \$130–\$140 million in fees in 2025 and opening new LP relationships and markets for Keppel. Aermont is raising Fund VI, expected to be larger than the previous €3.8 billion Fund V.

Growth Targets and Fund Management Strategy

Keppel aims to double FUM from \$100 billion to \$200 billion by 2030, requiring a CAGR of 16%. With historical FUM growth above 20% over 5–10 years, Keppel’s target appears achievable. Growth is expected from both organic fundraising and M&A, with the Aermont acquisition cited as a catalyst.

Financial Position, Debt Management, and Cash Flow

Keppel reported net debt of \$9.1 billion and net debt-to-EBITDA of about 5x. The New Keppel segment has around 2x net debt-to-EBITDA, while non-core assets have higher leverage but are slated for monetisation. Keppel received \$400 million in distributions in FY2025 from private funds, REITs, trusts, and co-investments. Monetisation of non-core assets is key for deleveraging, investing in New Keppel growth, and rewarding shareholders. The company’s overall group net gearing remains well managed at about 0.82x at end-FY2025.

While no timeline was given for New Keppel achieving cash flow neutrality or positive free cash flow, management stressed ongoing progress and transparency. Non-divested assets’ performance disclosures may be refined, but sensitive information will continue to be presented on an aggregate basis.

China Exposure and Asset Valuation

Keppel reduced its China exposure since 2017, monetizing about \$5 billion to date. Remaining residential exposure is relatively limited (about \$0.9 billion carrying value), and historic cost positions offer some protection against valuation challenges. Keppel applies consistent valuation processes for its investment properties.

Board and Leadership Changes

Mr Danny Teoh retired as Chairman at the close of the AGM, succeeded by Mr Piyush Gupta. Mr Gupta has contributed to sharpening Keppel’s strategic focus since joining the Board in July 2025 and is expected to continue the transformation journey. Mr Teoh’s tenure included Keppel’s repositioning, the COVID-19 pandemic, and the Keppel Offshore & Marine investigation.

Resolutions and Mandates Approved

Adoption of Directors’ Statement and Audited Financial Statements
Declaration of final and special dividends
Re-election of Piyush Gupta, Jimmy Ng, and Olivier Blum as Directors
Payment of up to S\$2.75 million as fees to non-executive directors
Re-appointment of PricewaterhouseCoopers LLP as auditors
Section 161 mandate for authority to issue shares and convertible instruments
Renewal of share purchase mandate (up to 5% of issued shares at up to 105% of average closing price)
Renewal of shareholders’ mandate for interested person transactions (IPTs)

Potential Price Sensitive Information

The 39% profit growth in New Keppel and 58.5% shareholder returns could positively impact share price.
Ongoing monetisation of non-core assets (\$13.5 billion target by 2030) and significant divestments may affect valuation and capital structure.
Progress in floating data centre and Bifrost Cable System, with imminent customer deals, may drive future earnings.
Leadership transition to Mr Piyush Gupta, who is known for strategic focus, could impact investor sentiment.
M1 telco business divestment awaiting regulatory approval, with potential accounting impacts.
Special dividend declaration and share buyback mandate renewal are positive for shareholder returns.

Conclusion

The AGM demonstrates Keppel’s successful transformation, robust earnings growth, and ongoing strategic initiatives poised to deliver long-term value. Investors should monitor the monetisation of non-core assets, progress in digital infrastructure projects, and leadership changes, as these factors may influence future share price and returns.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell shares in Keppel Ltd. Investors should conduct their own research and consult professional advisors before making any investment decisions. All information is based on the latest AGM minutes and may be subject to change.