CSE Global - Growth visibility anchored by strong order intake

2H25 revenue grew 22.1% year-on-year and higher final dividend

2H25 revenue rose 22.1% year-on-year (YoY) to S$528.0m. 

2H25 net profit surged 87.1% YoY to S$21.2m, helped by lower tax, partially offset by higher net interest, with 2H24 also containing an exceptional item. 

Order intake rose 56.6% to S$660.8m, lifting the year-end order book to S$709.5m (+5.5% YoY). 

CSE proposed a final dividend of S$0.0146, taking FY2025 dividends to S$0.026 (+8.3% YoY), implying ~49.9% payout.

Electrification was the key growth engine in 2H2025

Electrification revenue climbed 34.0% YoY to S$292.3m, supported by data centre and LNG contracts in the Americas, with AWS orders beginning to flow from December. 

EBITDA was stable at S$20.9m but margin compressed to 7.1% due to wastewater provisions (including a S$1.7m revenue reversal) and higher ramp-up costs (labour, facilities and equipment). 

Communications posted steady growth in 2H2025

Communications revenue grew 12.8% YoY in 2H25 to S$133.6m on contributions from acquired subsidiaries. 

EBITDA rose 2.3% to S$14.8m, but margin eased to 11.1% due to job delays and downtime in Australia/New Zealand, partly offset by improved Singapore project margins. 

Management indicated the delays have been resolved. 

Automation recorded modest revenue growth

Automation revenue increased 6.6% YoY to S$102.1m, while EBITDA edged down 0.9% to S$8.3m and margin fell to 8.2%, mainly due to a S$3.0m revenue write-off in the Americas.

Higher debt to fund growth

Cash fell to S$46.2m, while gross borrowings increased to S$209.2m; net debt rose to S$163.0m (net gearing 0.59x; net debt/EBITDA 1.95x). 

Healthy growth outlook

CSE enters 2026 with S$709.5m order book and expects a healthy year, supported by a resilient “flow” business (71% of revenue in FY25 vs 69% in FY24). Strategically, it is prioritising Electrification and Communications, with data centres a key driver. 

Maintain BUY with higher target price of S$1.45

We maintain BUY and raise TP to S$1.45 (from S$1.40) on a rolled-forward DCF, implying 13.3% upside from S$1.28. At S$1.45, CSE would trade at 22.8x 2026F P/E with 1.9% forward yield. 

Valuation remains attractive versus US electrical/power infrastructure peers, with CSE at 11.4x forward EV/EBITDA and 20.2x forward P/E versus peer medians of 16.2x and 27.6x.

Key Risks

Key risks include project execution and delivery delays, lumpiness and timing of contracts, working capital volatility inherent in project businesses, customer concentration risk as hyperscaler exposure rises, margin pressure from competitive bidding or mix, and regulatory or permitting constraints that could delay data centre and infrastructure project timelines.

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Related links:

• CSE Global share price and share price target
• CSE Global dividend history and forecast

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