"In 2025, the Group delivered excellent underlying performance, reflecting the strength and resilience of our businesses."
Teo Ming Kian, Chairman
Vincent Chong Sy Feng, Group President and CEO
Dear Shareholders,
We have consistently delivered steady performance since the turnaround after the COVID pandemic, despite the environment we operate in today being vastly different from the world before the pandemic, and the immediate years that followed. Global cost pressures, shifting supply chains, geopolitical uncertainty and rapid technology cycles have redefined competition.
On a reported basis, in 2025, Group Revenue was $12.35b, while Net Profit was $463m, reflecting non-cash impairment losses that were partially offset by gains from portfolio divestments.
On a base operating performance (BOP)1 basis, however, 2025 was a strong year, with the Group reaching new highs in revenue and profits, reflecting the underlying strengths of our businesses. Group Revenue grew 9% year-on-year (y-o-y) to $12.35b from $11.28b, with contributions from all three segments - Commercial Aerospace, Defence & Public Security and Urban Solutions & Satcom. Group BOP EBIT rose 16% y-o-y to $1.24b from $1.08b, while Group BOP PBT crossed the $1b mark, increasing 20% to $1.04b from $863m. Group BOP Net Profit grew 21% to $851m from $702m the year before.
2025 was also a year of active portfolio actions. As we focused on disciplined execution across our businesses, we continued our portfolio rationalisation in response to evolving market conditions and competitive dynamics, divesting where necessary and impairing where prudent. The impairment of the iDirect group reflected challenging operating conditions in the satellite communications industry and impacted reported earnings for the year. Our focus remains on customer delivery and turnaround efforts, alongside an ongoing review of strategic options for this business. These actions sharpened our focus on our core business, aligned with our strategy and enabled more effective capital recycling. We remain steadfast in executing our strategy, diversifying our presence across domains and regions, and continuing to invest in innovation, technology and talent.
During the year, strong contract wins of $18.7b strengthened our position in key markets and lifted the Group’s order book to a record high of $33.2b. This is a leading indicator of growth that supports our five-year (2025-2029) targets.
The performance of each business segment is discussed in greater detail in the Operating Review and Outlook on pages 24 to 41. We highlight selected developments below.
Our resilience is evident in our Commercial Aerospace segment, where disciplined investments and execution enabled us to compete and perform strongly.
In a highly competitive aerospace environment, customers hold solution and service providers to exacting standards of state-of-the-art technology, quality, reliability, turnaround time and price. Against this backdrop, in 2025, our Commercial Aerospace business continued to expand with segment revenue of $5b – more than double its pre-COVID level in 2020. This performance reflects the strength of our operating model and the confidence customers place in us.
During the year, we expanded and optimised our global network to strengthen competitiveness and add capacity where demand is growing. We opened a new airframe facility in Ezhou, China and progressed the construction of our greenfield site in Singapore’s Changi Creek, while enhancing engine MRO capabilities for the next-generation LEAP platforms. At the same time, we streamlined our global footprint through targeted capacity transitions, kept total capacity above pre-COVID levels and sharpened execution. Our OEM nacelle business continues to perform well, reinforcing the breadth of our capabilities across OEM and aftermarket activities.
To position ourselves for the next phase of growth, we are actively exploring partnerships with engine OEMs to co-develop composite aerostructure components and systems that will underpin next-generation narrowbody and widebody engine platforms. These collaborations will strengthen our role in the growing aerospace industry and deepen our capability to support future aircraft programmes.
Building on several decades of deep and extensive defence experience in Singapore, we continue to gain new grounds in the international defence market. Our participation in international defence programmes sharpens what we deliver locally in Singapore, while our domestic track record strengthens confidence abroad.This symbiosis builds trust and confidence across both markets.
In Singapore, we remain a trusted strategic partner to the Singapore Armed Forces, delivering advanced solutions that strengthen mission readiness. Our work to produce the next-generation Infantry Fighting Vehicles, based on our Terrex s5 8x8 platform, underscores our leadership in meeting evolving operational needs and our commitment to supporting Singapore’s long-term security.
Building on this, in partnership with MINDEF, we have launched an initiative to crowdsource ideas and work with innovative startups to co-develop advanced technologies, including in areas such as AI and cybersecurity. This approach helps to surface emerging dual-use technologies and translate them into practical, cost effective operationally ready solutions.
…we continued our portfolio rationalisation in response to evolving market conditions and competitive dynamics, divesting where necessary and impairing where prudent.
Internationally, defence contract outcomes continue to be shaped by geopolitical dynamics, local relationships and global competition. We address these challenges with production localisation, technology collaboration, product leadership and strategic partnership, enabling us to compete effectively in our focused markets, including Europe and the Middle East.
During the year, project milestones such as the commissioning of the Falaj 3-class Offshore Patrol Vessel for the UAE Navy and successful swim trials of the Terrex Barys-A in Kazakhstan reinforced our reputation as a trusted partner capable of delivering advanced programmes. Our selection by FADA under the EDGE Group to deliver a synthetic aperture radar satellite for the UAE further demonstrates our capability to compete for and to deliver complex projects for strategic applications.
We are also deepening our strategic role in public safety through expanded collaboration with HTX (Home Team Science and Technology Agency) in Singapore. This includes the design and development of an Enterprise Integrated Security System that will strengthen infrastructure security posture and enhance operational efficiency for the Singapore Prison Service. Together with HTX, we are building future capabilities through an initiative to accelerate the development and fieldtesting of next-generation solutions. Additionally, we have also set up a programme to draw on our network of academic and research partners to translate research outcomes into operationally viable technologies, ensuring a steady flow of innovation that supports long-term capability building.
Our Smart Mobility business remains the core of our Urban Solutions segment and continued to gain momentum internationally, strengthening our presence in markets such as Bangkok, Chennai and Taichung. In Taiwan, our turnkey rail services contract for the Taichung MRT Blue Line builds on our large-scale projects in Kaohsiung, supporting our progression as a turnkey provider and our move up the value chain.
Building on its established leadership in the U. S., our TransCore tolling solutions business secured its first tolling contract in Australia to deliver a next-generation, AI-powered multi-lane free flow tolling system in Sydney.
These projects involve greater complexity, which we manage through disciplined execution, proven expertise and strong industry partnerships. They reflect our ability to deliver higher-value solutions reliably as we extend our smart mobility capabilities across international markets.
As we build on this global momentum, we are also investing in the next generation of AI-powered mobility and infrastructure platforms that can predict, adapt and orchestrate movements across a city. Our smart city project in Lusail City, Qatar offers a glimpse of future possibilities. These future-ready capabilities sharpen our long-term competitiveness and position our Urban Solutions business to lead as cities accelerate their shift toward intelligent, connected and sustainable solutions.
Through disciplined execution, efficient capital structure and allocation as well as targeted strategic investments, we continue to deliver top-line growth with robust shareholder returns.
2025 was marked by rising tariffs. Against this evolving backdrop, the Group demonstrated resilience through disciplined execution and proactive mitigation. While we continue to monitor developments closely, the financial impact has thus far remained immaterial, supported by our diversified portfolio, operational agility and a commercial approach that mitigated these challenges effectively.
As industry attention increasingly turned to AI, technology remained central to our strategy. AI has long been embedded in our solutions, well before it became a focal point across the world. During the year, we strengthened this leadership with a $250m AI Research Translation programme over the next five years to scale AI-driven capabilities and solutions that will deliver tangible benefits to our customers and our operations.
Our edge lies in our talent. We have built strong AI capabilities across the Group and continue to invest in advanced capability, including developing 5,000 AI engineers and specialists to design and deploy intelligent systems over the next few years. These deliberate steps position us not only to adopt AI effectively, but to shape its application in real-world, mission-critical contexts for our customers.
Crucially, investments made in earlier years in automation and robotics, digitalised workflows and AI-enabled operations are now yielding tangible benefits. We continue to invest in these areas to further enhance productivity and support performance as our businesses scale.
We see strong opportunities to build new engines of growth by harnessing the Group’s strengths in technology and innovation. Recognising the value our capabilities can bring to sectors such as healthcare and financial services, we are applying our expertise in AI, cloud and cybersecurity to enter these new commercial segments. In the fast emerging hydrogen economy, we have launched HubGen, our decentralised electrolyser platform that produces hydrogen at the point of demand. By addressing energy access gaps and enabling more resilient, secure and decarbonised systems, HubGen exemplifies our strategy of seeding future businesses by leveraging Group innovation to meet global sustainability needs. These businesses are early in their development but hold significant long-term potential.
In 2025, we referenced IFRS Sustainability Standards for our climate disclosures, reinforcing our commitment to transparency and responsible business practices. Reducing our environmental footprint remains a core priority, with ongoing initiatives such as fleet electrification, renewable energy adoption and energyefficient technologies. These efforts support our target of a 50% reduction in Scope 1 and 2 emissions by 2030, using 2015 as the baseline.
We have already achieved a 27% reduction in absolute Scope 1 and 2 emissions since 2015, clear evidence that our decarbonisation efforts are taking effect. At the same time, our total energy consumption has remained stable year on year, even as the Group delivered 9% revenue growth, demonstrating that our growth is increasingly supported by more efficient and sustainable operations.
Sustainability is at the heart of our strategy, driving innovation and ensuring long-term value for our stakeholders. We remain committed to improving our ESG practices, guided by our core belief that business success and sustainability must go hand in hand. Learn more about our ESG efforts in our Sustainability Report.
Our Board of Directors continues to provide steadfast strategic guidance, oversight and governance, with their collective expertise playing a key role in driving the Group’s performance.
Through disciplined execution, efficient capital structure and allocation as well as targeted strategic investments, we continue to deliver top-line growth with robust shareholder returns.
At our 2025 Investor Day in March, we set clear targets for 2029 to sustain revenue and earnings growth. These targets are complemented by a new dividend policy which states that effective from FY2026 onwards, as the Group achieves progressively higher full-year net profit, we will pay out about one third of the year-on-year increase in net profit as incremental dividends. This dividend policy allows shareholders to benefit from a steady base dividend which will grow in tandem with increased earnings, while enabling the Group to reinvest to enhance capabilities and capture growth. In continuing our yield-cum-growth journey, the Group seeks to sustainably deliver strong total shareholder returns driven by both capital gains and dividend growth.
In 2025, the Group generated strong operating cash flow of $1.7b and received divestment proceeds of around $0.7b, enabling reinvestment for growth, debt reduction as well as value return to shareholders through higher dividends.
The Board has proposed a final dividend of 6.0 cents per share and a special dividend of 5.0 cents per share, subject to shareholder approval at the 2026 AGM. Including the interim dividends of 12.0 cents per ordinary share paid for FY2025, the total dividend for FY2025 will be 23.0 cents per share.
As we continue our growth journey, we extend our heartfelt thanks to all our stakeholders and our shareholders for their strong support. Our employees remain the foundation of our success, with their dedication and hard work being central in our journey of becoming a global technology, defence and engineering powerhouse.
1 Base Operating Performance (BOP) refers to reported financial results adjusted to exclude (i) gains on divestments of subsidiary, LeeBoy, as well as shareholding interests in CityCab, SPTel and STARCO, and (ii) one-off impairment losses related to iDirect group and Jet-Talk.
27 February 2026
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