Keppel Corporation Limited Q2 2026 Earnings Recap

Shares declined 4.4% as investors reacted negatively to the significant net loss in the noncore portfolio driven by legacy rig impairments and related costs, which overshadowed growth in recurring income and record funds under management.

Key Takeaways

• Net profit reported at SGD 155 million, substantially impacted by a SGD 375 million net loss from the noncore portfolio due to impairments on legacy rigs and termination-related charges.
• Recurring income rose 13% year-on-year to SGD 467 million, supported by asset management and operating platforms.
• Profit from sponsor stakes and co-investments (SSCI) jumped to SGD 175 million from SGD 18 million a year earlier, highlighting growing contributions from asset co-investments.
• Funds under management exceeded targets, reaching SGD 106 billion, ahead of the SGD 100 billion goal for 2026.
• Free cash flow swung positive to SGD 570 million, improving financial flexibility despite ongoing challenges in the legacy rig segment.