Keppel core profit soars 39% to $1.1b as infrastructure engine peaks

The company’s core businesses thrived despite M1 divestment, lifting FY2025 dividends 38%.

Keppel Ltd.’s core businesses delivered a strong performance in FY2025, posting a 39% rise in net profit to $1.1b.

Including non-core portfolio and discontinued operations, the overall net profit fell to $789m from $940m a year, the company reported on 5 February.

The drop in overall profit was largely driven by a $222m accounting loss linked to the proposed sale of M1’s telecommunications business, which is still pending regulatory approval.

Recurring income from core operations grew 21% year on year to $941m, with all three business segments reporting higher profits, led by the Infrastructure segment.

Return on equity for the core businesses rose to 18.7%, up from 14.9% in FY2024, whilst net debt to EBITDA improved to 2.0x from 2.3x a year earlier.

Keppel’s asset management arm also posted growth, with net profit up 15% to $189m and fees increasing 4% to $453m.

Funds under management expanded 8% year on year to $95b by the end of 2025.

The group completed $1.6b of its $2.9b asset monetisation transactions in 2025, bringing total announced monetisation since October 2020 to $14.5b.

The Non-Core Portfolio for Divestment held a value of $13.5b at year-end. Keppel recorded a free cash inflow of $611m for the year.

The strong core performance underpins a total FY2025 dividend of about 47 cents per share, up 38% from FY2024 which includes ordinary cash dividends of 34 cents per share and a special dividend of about 13 cents per share.

The final dividend is subject to shareholder approval and is expected to be paid on 8 May 2026.