Seatrium Limited (SG:5E2)
SGX:5E2
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Seatrium Limited
(SGX:5E2)
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Rating:63Neutral
Price Target:
S$2.00
▼(-17.36% Downside)
Action:Reiterated
Date:03/26/26
The score is driven primarily by the improving profitability and balance-sheet trend but held back by weak/volatile cash conversion. The latest earnings call was notably positive on margin expansion, order-book quality, and capital returns, while technicals are mildly supportive and valuation is only average given the current risk profile.
Positive Factors
Large, high-quality order book and pipeline
A $17.8bn backlog (over 1.5x FY revenue) and a $32bn pipeline provide multi-year revenue visibility and backlog conversion optionality. High backlog supports yard utilization, capacity planning and sustained award opportunities, reducing near-term demand cyclicality risk.
Negative Factors
Weak and volatile cash conversion
Cash generation lags reported profits, driven by working-capital dynamics in large milestone contracts. Low OCF-to-profit reduces free cash flow reliability, constrains reinvestment and makes capital returns contingent on one-offs, increasing structural liquidity and allocation risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, high-quality order book and pipeline
A $17.8bn backlog (over 1.5x FY revenue) and a $32bn pipeline provide multi-year revenue visibility and backlog conversion optionality. High backlog supports yard utilization, capacity planning and sustained award opportunities, reducing near-term demand cyclicality risk.
Read all positive factors
Seatrium Limited (5E2) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$6.57B
Dividend Yield0.7%
Average Volume (3M)14.82M
Price to Earnings (P/E)33.3
Beta (1Y)1.33
Revenue Growth24.28%
EPS Growth107.38%
CountrySG
Employees23,000
SectorEnergy
Sector Strength52
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.08
Shares Outstanding3,411,859,000
10 Day Avg. Volume20,893,800
30 Day Avg. Volume14,816,383
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)1.06
Price to Sales (P/S)0.64
P/FCF Ratio274.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$2.91Price Target Upside20.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.14
Revenue Forecast (FY)S$10.66B
Seatrium Limited Business Overview & Revenue Model
Company Description
Seatrium Limited delivers specialized engineering solutions across the offshore, marine, and energy sectors. The company provides integrated project services, encompassing the full lifecycle of design, engineering, procurement, construction, and c...
How the Company Makes Money
Seatrium primarily makes money by executing large, contract-based engineering and shipyard projects and by providing recurring repair and lifecycle services. Key revenue streams include: (1) Newbuild and EPCC projects: Revenue is earned from desig...
Seatrium Limited Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call presented a clearly constructive picture: material top-line growth, more than doubled net profit, substantial margin improvement and stronger cash generation (particularly when excluding legacy one-offs). Management emphasized a higher-quality order book (95% Series-Build), large pipeline ($32 billion), completed project milestones (P-78, Empire Wind) and active divestments that bolster liquidity and reduce costs. Challenges noted were manageable in scale relative to positives — provisions (~$96.5 million) tied to a small set of legacy projects, one delayed naval project (NApAnt to 2027), softer repairs/upgrade activity, and some timing/FDI uncertainty in converting pipeline opportunities. On balance, highlights significantly outweigh the lowlights, supporting an overall positive outlook while recognizing conversion and legacy timing risks.Positive Updates
Strong Revenue Growth
Revenue increased ~24% year-on-year to $11.5 billion (FY2025 vs $9.2 billion FY2024), driven by disciplined execution across a diversified order book.
Negative Updates
Provisions for Onerous Contracts
Recognized ~$96.5 million in provisions related principally to two U.S. projects (delivered after year-end) and a legacy shipbuilding project (NApAnt), which weighed on reported margins and operating income.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
Revenue increased ~24% year-on-year to $11.5 billion (FY2025 vs $9.2 billion FY2024), driven by disciplined execution across a diversified order book.
Read all positive updates
Company Guidance
Seatrium’s forward guidance emphasizes margin expansion, cash generation and disciplined capital allocation: it proposes doubling the dividend to $0.03/share and continuing a $100m buyback while pursuing a >$32bn pipeline (including ~$23bn oil & gas and ~$2bn conversion opportunities), supported by a $17.8bn net order book (95% Series‑Build, just over 1% non‑FPSO legacy) and >$4bn of new orders in FY2025. FY2025 results underpin the outlook — revenue ~24% to $11.5bn, net profit $324m (vs $157m), gross profit $848m and gross margin 7.4% (up ~430bp), operating cash flow $142m (ex‑one‑offs $440m), free cash flow ex‑one‑offs $443m — alongside balance sheet strength: gross debt down 5% to $2.5bn, cost of debt ~3.4%, liquidity $3.1bn, net leverage 0.8x and net gearing 0.1x. Management is targeting mid‑teens risk‑adjusted project margins, further cost savings and asset disposals (>$50m annualized savings, >$230m gross gains, >$330m cash proceeds with $110m received in FY2025, and >$100m cumulative savings by FY2028), while noting provisions of ~$96.5m related to three projects (including U.S. projects delivered and NApAnt delayed to 2027, initial contract ~ $200m).Seatrium Limited Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
63
Positive
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.58B | 11.47B | 9.23B | 7.29B | 1.95B | 1.86B |
| Gross Profit | 538.41M | 765.73M | 290.68M | -209.34M | -141.96M | -1.11B |
| EBITDA | 673.38M | 849.39M | 833.52M | -1.27B | 101.95M | -954.83M |
| Net Income | 265.23M | 323.62M | 156.84M | -2.02B | -261.14M | -1.17B |
Balance Sheet | ||||||
| Total Assets | 17.49B | 18.10B | 17.48B | 16.23B | 9.10B | 9.30B |
| Cash, Cash Equivalents and Short-Term Investments | 1.64B | 1.93B | 1.96B | 2.27B | 2.13B | 1.11B |
| Total Debt | 2.84B | 2.95B | 3.12B | 3.55B | 3.36B | 3.35B |
| Total Liabilities | 10.94B | 11.19B | 11.14B | 9.81B | 5.31B | 5.27B |
| Stockholders Equity | 6.55B | 6.91B | 6.34B | 6.39B | 3.77B | 4.00B |
Cash Flow | ||||||
| Free Cash Flow | 1.07B | 26.60M | -4.26M | 484.45M | 1.01B | -637.23M |
| Operating Cash Flow | 1.13B | 148.25M | 97.35M | 600.80M | 1.04B | -589.09M |
| Investing Cash Flow | 94.55M | -3.64M | 119.91M | 654.35M | -26.21M | -44.22M |
| Financing Cash Flow | -1.22B | -237.77M | -524.11M | -1.07B | -20.66M | 964.16M |
Seatrium Limited Technical Analysis
Negative
2.42
Price Trends
2.26
Negative
2.23
Negative
2.21
Negative
Market Momentum
-0.09
Positive
32.43
Neutral
18.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5E2, the sentiment is Negative. The current price of 2.42 is above the 20-day moving average (MA) of 2.11, above the 50-day MA of 2.26, and above the 200-day MA of 2.21, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 32.43 is Neutral, neither overbought nor oversold. The STOCH value of 18.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:5E2.
Seatrium Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | S$458.95M | 5.10 | 41.48% | ― | -6.04% | 33.67% | |
74 Outperform | S$13.63B | 8.71 | 28.61% | 3.46% | 5.09% | 27.85% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | S$298.42M | 20.86 | 12.68% | 0.78% | ― | ― | |
63 Neutral | S$6.57B | 33.33 | 3.11% | 0.70% | 24.28% | 107.38% | |
63 Neutral | S$143.95M | 22.27 | 19.38% | 2.11% | -12.27% | -54.40% |
* Energy Sector Average
SG:5E2
Seatrium Limited
2.00
-0.06
-3.05%
SG:BS6
Yangzijiang Shipbuilding (Holdings)
3.60
1.41
64.16%
SG:A04
ASL Marine Holdings Ltd.
0.31
0.25
425.86%
SG:BEZ
Beng Kuang Marine Ltd.
0.49
0.31
178.41%
SG:C13
CH Offshore Ltd.
0.01
>-0.01
-6.67%
SG:1MZ
Nam Cheong Limited
1.28
0.80
166.67%
Seatrium Limited Corporate Events
Seatrium Extends Growth Run With S$15.5 Billion Order Book and Margin Gains
May 29, 2026
Seatrium reported that it entered 2026 with sustained growth momentum, executing a net order book of S$15.5 billion across 24 projects with deliveries through 2033 and completing two legacy vessels, the TSHD Frederick Paup and WTIV Maersk Viridis....
Seatrium Shareholders Back Dividend, Board Slate and Share Issue Mandate at 63rd AGM
May 22, 2026
Seatrium Limited held its 63rd annual general meeting in Singapore and via virtual technology, where the board and management presented the group’s operating and financial performance for the year ended 31 December 2025, along with a 24̴...
Seatrium Raises S$400m via Debut Notes Under S$3bn Debt Programme
Apr 28, 2026
Seatrium Limited, headquartered and listed in Singapore, is a leading provider of specialised engineering solutions for the offshore, marine and energy sectors, operating an integrated network of advanced yards and technology centres in 15 countri...
Seatrium Completes Tugboat Fleet Sale to Cut Costs and Refocus Core Business
Apr 27, 2026
Seatrium Limited has completed the divestment of its fleet of 17 tugboats in Singapore, finalised on 24 April 2026 as part of a broader programme to shed non-core assets. The move is expected to generate over S$50 million in annualised cost saving...
Seatrium launches S$400m inaugural notes to fund growth and refinancing
Apr 21, 2026
Seatrium Limited’s wholly owned subsidiary Seatrium Financial Services has priced its inaugural S$400 million fixed-rate notes due 2031 under a S$3 billion multicurrency debt issuance programme, with the notes carrying a 2.95% coupon and an ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.