Keppel Reports Robust FY 2025 Performance with $1.1 Billion Net Profit
Global asset manager and operator Keppel Ltd. (“Keppel”) announced a strong financial performance for the full year ended 31 December 2025. The New Keppel delivered a net profit of $1.1 billion, representing a 39% year-on-year (yoy) increase from $793 million in FY 2024, excluding the Non-Core Portfolio for Divestment and Discontinued Operations. The growth reflects improved results across all three business segments, with Infrastructure contributing the largest share of profits.
Recurring income rose significantly, reaching $941 million in FY 2025, up 21% from $779 million in FY 2024. The Company’s Return on Equity (ROE) improved to 18.7%, compared with 14.9% in the previous year, highlighting the effectiveness of Keppel’s pivot to an asset-light, high-quality earnings model.
Including the Non-Core Portfolio for Divestment and Discontinued Operations, Keppel reported an overall net profit of $789 million, lower than the $940 million recorded in FY 2024. The decrease was primarily due to a $222 million accounting loss arising from the proposed sale of M1’s telecommunications business, which is still subject to regulatory approval.
Strong Performance Across Business Segments
Keppel’s results were underpinned by solid performance in all three of its core business segments: Infrastructure, Asset Management, and Operations.
Infrastructure
Infrastructure remained the largest contributor to Keppel’s profitability, driven by resilient results from the integrated power business despite softening spark spreads. The segment also benefited from stronger growth in decarbonisation and sustainability solutions, reflecting the Company’s commitment to providing environmentally responsible infrastructure.
Asset Management
Keppel’s asset management business demonstrated continued growth, with Funds under Management (FUM) increasing 8% yoy to $95 billion at the end of 2025. This growth was supported by successful fundraising and investment initiatives, which added $10.1 billion of new FUM during the year. Asset management fees rose 4% yoy to $453 million, contributing to a net profit of $189 million, up 15% from FY 2024. The segment’s performance helped strengthen recurring income and underscored Keppel’s growing role as a global asset manager.
Operations
Operations contributed to the Company’s recurring income and overall profitability. Strong operational performance across Keppel’s integrated businesses, including energy and connectivity solutions, further supported the robust FY 2025 results.
Asset Monetisation: Delivering Value and Liquidity
Keppel made significant progress in its asset monetisation programme in 2025. The Company announced approximately $2.9 billion in divestment deals during the year, bringing the total asset monetisation since October 2020 to around $14.5 billion. Completed transactions in FY 2025 accounted for $1.6 billion of gross monetisation value, demonstrating Keppel’s focus on optimising divestment speed and maximising exit value.
The Non-Core Portfolio for Divestment had a carrying value of $13.5 billion as at the end of 2025. Keppel remains committed to enhancing liquidity and shareholder value through the strategic monetisation of non-core assets, aligning with its broader asset-light strategy.
Recurring Income Growth
Keppel’s recurring income rose 21% yoy to $941 million in FY 2025, reflecting higher profits from both asset management and operations. The growth in recurring income demonstrates the Company’s ability to generate stable, predictable earnings, supporting sustainable long-term growth.
The Company’s free cash inflow reached $611 million in 2025, strengthened by higher recurring income and successful asset monetisation efforts. Keppel also achieved annual run-rate cost savings of $98 million since 2023 and is on track to reach $120 million by the end of 2026, further enhancing operational efficiency.
Rewarding Shareholders
Keppel continued to prioritise shareholder returns through a combination of ordinary and special dividends. For FY 2025, the Board proposed total distributions of approximately 47 cents per share, representing a 38% increase from FY 2024.
Ordinary Dividends
The proposed ordinary cash dividend for FY 2025 is 19 cents per share, payable to shareholders on 8 May 2026, subject to approval at the Annual General Meeting. Combined with the interim dividend of 15 cents per share paid in August 2025, the total ordinary cash dividend amounts to 34 cents per share, representing a 56% payout ratio based on New Keppel’s net profit.
Special Dividends
In addition to ordinary dividends, Keppel proposed a special dividend of approximately 13 cents per share, reflecting 10-15% of the gross value of asset monetisation completed during the financial year. This includes 2 cents per share in cash and a dividend in-specie of one Keppel REIT unit for every nine Keppel shares held, equivalent to approximately 11 cents per share based on Keppel REIT’s closing market price of $0.98 on 3 February 2026.
The total shareholder return (TSR) for Keppel in 2025 reached 58.5%, significantly outperforming the Straits Times Index, which rose 28.8% during the same period. The Company’s $500 million Share Buyback Programme, launched in July 2025, also contributed to shareholder value, with $116 million of shares repurchased by the end of the year.
Financial Health and Balance Sheet Strength
Keppel’s Net Debt to EBITDA ratio improved to a healthy 2.0x as at end-2025, down from 2.3x in FY 2024, reflecting strong balance sheet management. The Company’s focus on recurring income, asset monetisation, and operational efficiency has enabled it to strengthen financial resilience and maintain liquidity.
CEO’s Commentary
Mr Loh Chin Hua, CEO of Keppel, highlighted the Company’s strong FY 2025 performance and its strategic positioning for future growth. “The New Keppel performed strongly in 2025, surpassing $1 billion in net profit and achieving a high ROE of 18.7%. We are well-positioned as a global asset manager and operator to create value for our Limited Partners and shareholders, providing energy and connectivity solutions in an era of digitalisation and AI. With new power generation capacity and an expanding data centre powerbank of over 1.0 GW in the Asia Pacific, Keppel continues to be recognised for its transformation in the market,” Mr Loh said.
Outlook
Keppel remains focused on delivering sustainable long-term value for shareholders and investors. The Company will continue executing its asset-light strategy, optimising monetisation of non-core assets, and expanding its global asset management footprint. With strong recurring income, ongoing operational efficiencies, and disciplined capital allocation, Keppel is well-positioned to continue delivering robust financial performance and attractive shareholder returns.
In Summary:
- Net profit of $1.1 billion, up 39% yoy.
- ROE increased to 18.7% from 14.9%.
- Recurring income up 21% to $941 million.
- FUM grew 8% yoy to $95 billion; asset management net profit up 15% yoy.
- $2.9 billion of asset monetisation deals in 2025; cumulative $14.5 billion since 2020.
- Total dividends proposed at 47 cents per share, up 38% from FY 2024.
- TSR of 58.5%, outperforming the Straits Times Index.
Keppel’s FY 2025 results demonstrate the Company’s strong foundation, financial resilience, and commitment to delivering long-term value for shareholders, Limited Partners, and stakeholders globally.
About Keppel Ltd.
Keppel Ltd. (SGX:BN4) is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity. Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal and digital connectivity. Keppel creates value for investors and stakeholders through its quality investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts.
SOURCE LINK : https://www.keppel.com/
