Tuas Ltd. Earnings Call Highlights Surging Growth

Tuas Ltd. ((AU:TUA)) has held its Q2 earnings call. Read on for the main highlights of the call.

Tuas Ltd. struck an upbeat tone on its latest earnings call, underscoring robust growth across revenue, earnings and subscribers while highlighting a sharply stronger cash position. Management acknowledged headwinds from rising network costs and uncertainty around the pending M1 acquisition, but insisted that the company’s operating momentum and financial firepower leave it well placed for the next phase of expansion.

Revenue Growth

Half‑year revenue climbed to S$91.9 million from S$73.2 million a year earlier, a solid 26% increase that reflects continued customer acquisition and higher service usage. Management framed this as evidence that Tuas is taking share in a competitive market, with both mobile and broadband businesses contributing meaningfully to the top‑line uplift.

Underlying EBITDA and Margin Expansion

Underlying EBITDA rose 27% to S$42.1 million, up from S$33.1 million in the prior comparable period. The EBITDA margin nudged higher to 46% of revenue, roughly one percentage point better year‑on‑year, indicating that operating leverage and cost discipline are still working in Tuas’s favor even as it invests for growth.

Statutory Net Profit Improvement

Statutory net profit after tax surged to S$8.2 million, compared with S$3.0 million a year earlier, representing roughly 173% growth. The improvement came despite one‑off pre‑acquisition expenses and shows that the expanding customer base and higher earnings are increasingly flowing through to the bottom line.

Mobile Subscriber Momentum

Mobile subscribers reached about 1.412 million as of 31 January 2026, a 13% increase over just six months. This pace underscores Tuas’s ongoing ability to attract and retain users, reinforcing its position as a serious challenger in Singapore’s mobile market and providing a growing base for recurring service revenue.

Rapid Broadband Subscriber Gains

The fixed broadband business posted standout growth, with active services climbing to roughly 46,000 after adding 20,000 customers in the half year. That equates to about 77% growth over the period and signals accelerating traction as the company cross‑sells to mobile users and leans into bundled connectivity offers.

Strong Cash Position and Fundraising

Tuas closed the half with a formidable cash and term deposit balance of S$478 million, up from S$80.7 million at the start of the period. Net cash from operations reached S$50.1 million and, together with S$260 million of funds raised for acquisition activities, left the group with positive cash flow after capital expenditure and ample liquidity for strategic moves.

Network Coverage and Service Recognition

The company surpassed the Infocomm Media Development Authority’s 95% 5G outdoor coverage benchmark ahead of schedule, a key regulatory milestone. Independent tests from Ookla also named Simba as delivering the fastest and most reliable download speeds in the second half of calendar 2025, validating Tuas’s network investment and engineering capabilities.

Disciplined CapEx Guidance

Capital investment remained disciplined, with S$18.9 million spent in the first half on plant, equipment and fixed broadband infrastructure. Management reiterated its full‑year stand‑alone CapEx guidance of S$50–55 million, signaling that Tuas intends to support growth while keeping a tight rein on spending and protecting returns.

Pre‑Acquisition Costs

Tuas booked S$10.5 million in pre‑acquisition costs during the half, tied to legal, tax, financial due diligence and advisory work on the proposed M1 transaction. While these charges weigh on reported profit, management emphasized they relate to one‑off deal preparation rather than the underlying performance of the core telecoms business.

Gross Margin Pressure and Higher Network COGS

Despite EBITDA growth, management acknowledged that gross margin declined year‑on‑year due to higher network cost of goods sold. The comments suggest that while scale benefits are supporting operating margins, the company is facing cost pressure at the gross profit level, likely reflecting traffic growth and network input expenses.

M1 Acquisition Uncertainty and Timing

The proposed acquisition of M1 remains under review by the IMDA and has taken longer than originally expected, with completion timelines still unclear. Tuas and its counterparties are working to extend the original agreement, and management conceded that regulatory and execution risks around the deal are a key overhang for investors.

Quarterly Seasonality and Subscriber Variability

Management flagged seasonal patterns in customer sign‑ups, particularly stronger holiday activity in November and December, which can skew quarter‑to‑quarter performance. Investors were cautioned not to over‑interpret short‑term swings in subscriber additions and instead to focus on the broader upward trajectory across the half year.

Forward‑Looking Guidance and Outlook

Looking ahead, Tuas reaffirmed its FY 2026 stand‑alone CapEx range of S$50–55 million and stressed a continued focus on margin optimization and disciplined cash management as the business scales. Management expects sustained growth in both mobile and fiber broadband, underpinned by its strengthened balance sheet, expanding subscriber base and validated 5G network, while the M1 review process continues in the background.

Tuas’s latest earnings call painted the picture of a fast‑growing telecom challenger balancing heavy investment with improving profits and a fortified cash position. While rising network costs and regulatory uncertainty around M1 present real risks, the core business is showing strong operational momentum, leaving investors with a generally positive narrative tempered by deal‑related caution.