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Seatrium Limited
(SGX:5E2)
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Rating:65Neutral
Price Target:
S$2.50
▲(7.76% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by improving profitability and scale, supported by constructive technical momentum and a generally positive earnings-call outlook (margin progression, stronger balance sheet, and pipeline visibility). Offsetting these positives are weak cash conversion versus earnings and a valuation (P/E ~22.5) that leaves less room for execution missteps, especially given timing uncertainty for new awards.
Positive Factors
Revenue Scale & Growth Trajectory
Management's reiterated FY2028 $10–$12bn target and H1 revenue of $5.6bn reflect a durable multi-year scale-up driven by large EPCC contracts. Sustained contract-based billing and growing yard throughput support predictable revenue recognition and investable scale over the next 2–6 months and beyond.
Negative Factors
Weak Cash Conversion
Free cash flow covers only a small fraction of reported earnings, indicating working-capital intensity and timing volatility in milestone receipts. Low cash conversion constrains reinvestment, raises refinancing sensitivity, and reduces margin of safety if project schedules or customer payments slip.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Scale & Growth Trajectory
Management's reiterated FY2028 $10–$12bn target and H1 revenue of $5.6bn reflect a durable multi-year scale-up driven by large EPCC contracts. Sustained contract-based billing and growing yard throughput support predictable revenue recognition and investable scale over the next 2–6 months and beyond.
Read all positive factors
Seatrium Limited (5E2) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$7.28B
Dividend Yield1.4%
Average Volume (3M)14.82M
Price to Earnings (P/E)22.5
Beta (1Y)1.32
Revenue Growth10.77%
EPS Growth108.44%
CountrySG
Employees24,000
SectorEnergy
Sector Strength52
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.09
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$2.61Price Target Upside12.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.14
Revenue Forecast (FY)S$10.88B
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:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized a clear improvement in operating performance and balance-sheet strength: revenue growth, notable margin expansion (+120 bps), significant YoY NPAT gains (54% ex‑divestments) and a positive free cash flow turnaround. Management flagged continued market uncertainty (FID timing), near-term softness in offshore wind and some one-off charges and geopolitical-related MRO disruption. The company highlighted a large $32 billion pipeline, higher-quality order book (~95% series builds), ongoing divestment proceeds and targeted cost savings that support further margin progression. Overall, the positive financial momentum, improved liquidity and stronger order quality outweigh the near-term market and one-off challenges, supporting a constructive outlook while noting timing risks for new awards.Positive Updates
Revenue Growth and Scale
Revenue rose to $5.6 billion (management cited +5% YoY; CFO noted +4.6%), maintaining run-rate toward FY2028 steady-state target of $10–$12 billion.
Negative Updates
Market Activity and FID Timing Uncertainty
Management noted a relatively quiet H1 and emphasized that FID timing is uncertain—pipeline real but dependent on customer timing; new order wins YTD modest (~$100 million).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Scale
Revenue rose to $5.6 billion (management cited +5% YoY; CFO noted +4.6%), maintaining run-rate toward FY2028 steady-state target of $10–$12 billion.
Read all positive updates
Company Guidance
Management reiterated a clear pathway to its FY2028 steady‑state targets of $10–12 billion revenue and margin expansion, pointing to H1 2026 progress with revenue of about $5.6 billion (≈+4.6–5% YoY), gross margin up to 8.6% (from 7.4%, +120 bps), NPAT of $373 million including a $172 million divestment gain (or $212 million excl. divestments, +54% YoY), and EBITDA excl. divestments of $479 million (+20% YoY). They expect stronger full‑year 2026 performance, accelerated FID momentum and pipeline conversion from a global $32+ billion pipeline (roughly $21bn oil & gas, $9bn offshore wind, $2bn conversions), a net order book of ~$13.3 billion with 24 project deliveries through 2033 and >95% series‑build content, and attractive FPSO and conversion opportunities (FPSO new‑builds in the ~$4–5 billion range; 6–9 FSRU tenders noted). Cash and capital guidance included positive operating cash flow of $114 million excluding a $73 million one‑off settlement (reported OCF $41m), free cash flow of $237 million excl. settlement (vs. -$5m prior), $167 million unlocked from divestments, a $50 million annualized OpEx savings target (≈$10m recognized in H1 with full run‑rate from May 2026), CapEx of $52 million in H1, a $3 billion multicurrency debt program with an inaugural $400m 2031 bond at 2.95%, $3.4 billion liquidity, improved net leverage to 0.5x and net gearing 0.1x, ROE annualized 6.1% progressing to an 8%+ target, and shareholder returns with a $100 million buyback nearly complete ($90m repurchased).Seatrium Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
67
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.47B | 9.23B | 7.29B | 1.95B | 1.86B |
| Gross Profit | 765.73M | 290.68M | -209.34M | -141.96M | -1.11B |
| EBITDA | 849.39M | 833.52M | -1.27B | 101.95M | -954.83M |
| Net Income | 323.62M | 156.84M | -2.02B | -261.14M | -1.17B |
Balance Sheet | |||||
| Total Assets | 18.10B | 17.48B | 16.23B | 9.10B | 9.30B |
| Cash, Cash Equivalents and Short-Term Investments | 1.93B | 1.96B | 2.27B | 2.13B | 1.11B |
| Total Debt | 2.95B | 3.12B | 3.55B | 3.36B | 3.35B |
| Total Liabilities | 11.19B | 11.14B | 9.81B | 5.31B | 5.27B |
| Stockholders Equity | 6.91B | 6.34B | 6.39B | 3.77B | 4.00B |
Cash Flow | |||||
| Free Cash Flow | 26.60M | -4.26M | 484.45M | 1.01B | -637.23M |
| Operating Cash Flow | 148.25M | 97.35M | 600.80M | 1.04B | -589.09M |
| Investing Cash Flow | -3.64M | 119.91M | 654.35M | -26.21M | -44.22M |
| Financing Cash Flow | -237.77M | -524.11M | -1.07B | -20.66M | 964.16M |
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$443.12M | 4.52 | 41.48% | ― | -6.04% | 33.67% | |
74 Outperform | S$15.49B | 9.35 | 28.61% | 5.00% | 5.09% | 27.85% | |
66 Neutral | S$148.47M | 18.89 | 21.29% | 1.14% | -12.27% | -54.40% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | S$7.28B | 22.49 | 4.81% | 1.29% | 10.77% | 108.44% | |
65 Neutral | S$329.29M | 10.74 | 24.71% | 0.39% | ― | ― |
* Energy Sector Average
SG:5E2
Seatrium Limited
2.21
-0.10
-4.33%
SG:BS6
Yangzijiang Shipbuilding (Holdings)
3.96
1.45
57.89%
SG:A04
ASL Marine Holdings Ltd.
0.32
0.26
392.31%
SG:BEZ
Beng Kuang Marine Ltd.
0.49
0.24
95.22%
SG:C13
CH Offshore Ltd.
0.01
>-0.01
-13.33%
SG:1MZ
Nam Cheong Limited
1.12
0.43
61.15%
Seatrium Limited Corporate Events
Seatrium Signals Stronger First-Half 2026 Profit on Divestment Gains and Margin Improvements
Jul 24, 2026
Seatrium Limited has issued a profit guidance indicating a material year-on-year improvement in net profit after tax for the first half of 2026, following a preliminary review of its unaudited consolidated results. The company attributes the expec...
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...
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.