Sembcorp Industries (SG:U96)
SGX:U96
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Sembcorp Industries
(SGX:U96)
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Rating:65Neutral
Price Target:
S$6.50
▲(1.72% Upside)
Action:ReiteratedDate:03/03/26
The score is driven primarily by solid profitability/ROE but constrained by leverage and inconsistent free-cash-flow conversion. Valuation is a key positive (P/E ~11 and ~4.25% yield), while technicals and earnings-call outlook are neutral due to subdued momentum and cited near-term headwinds (spark spreads/recontracting and China regulatory/curtailment impacts).
Positive Factors
Sustained Profitability / ROE
A consistent ~US$1bn underlying profit and high-teens ROE provide a durable earnings base and internal funding for dividends, capex and M&A. This profitability platform supports resilience through cyclical swings and underpins capacity to service debt and invest in strategic growth over the next 2–6 months.
Negative Factors
Elevated Leverage
High leverage constrains financial flexibility and increases sensitivity to cash flow shocks. With net debt/EBITDA near 3.9x, interest costs and refinancing needs can limit capacity for discretionary investments or absorb operational headwinds, raising medium-term balance sheet risk if earnings weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Profitability / ROE
A consistent ~US$1bn underlying profit and high-teens ROE provide a durable earnings base and internal funding for dividends, capex and M&A. This profitability platform supports resilience through cyclical swings and underpins capacity to service debt and invest in strategic growth over the next 2–6 months.
Read all positive factors
Sembcorp Industries (U96) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$11.37B
Dividend Yield4.33%
Average Volume (3M)4.64M
Price to Earnings (P/E)10.9
Beta (1Y)0.66
Revenue Growth-6.69%
EPS Growth6.76%
CountrySG
Employees5,347
SectorUtilities
Sector Strength65
IndustryConglomerates
Share Statistics
EPS (TTM)0.20
Shares Outstanding1,780,465,300
10 Day Avg. Volume4,602,850
30 Day Avg. Volume4,637,266
Financial Highlights & Ratios
PEG Ratio-3.10
Price to Book (P/B)1.93
Price to Sales (P/S)1.85
P/FCF Ratio72.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$6.93Price Target Upside8.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.53
Revenue Forecast (FY)S$6.89B
Sembcorp Industries Business Overview & Revenue Model
Company Description
Sembcorp Industries Ltd, an investment holding company, engages in the renewables, integrated urban solutions, conventional energy, and other businesses in Singapore, rest of southeast Asia, the Middle East, China, India, the United Kingdom, and i...
How the Company Makes Money
Sembcorp Industries generates revenue through multiple key streams. The primary source of income comes from its energy segment, which involves the generation and sale of electricity, including both conventional and renewable energy sources such as...
Sembcorp Industries Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral: The company delivered a resilient set of FY2025 results — maintaining ~ $1 billion underlying profit, increasing the dividend and showing strong cash generation, liquidity and a sizeable renewable and infrastructure pipeline. However, material near-term headwinds remain: Singapore spark spread compression and recontracting (including Senoko), significant curtailment and regulatory impacts in China (including VAT refund cancellation), U.K. demand weakness, translation and one‑off FX volatility and some project/timing impacts on ROE. Management is confident on returns and growth (Alinta, renewables pipeline, IUS), but the near‑term operational and regulatory headwinds leave FY2026 outlook uncertain. Highlights and lowlights are broadly balanced.Positive Updates
Resilient Underlying Profit
Underlying net profit of approximately $1.00 billion (FY2025) — maintaining the ~$1 billion platform for consecutive years; underlying EPS $0.564 and ROE of 18.2%.
Negative Updates
Top-line pressure and EBITDA decline
Management reported a commensurate ~10% decline in turnover year‑on‑year and disclosed adjusted EBITDA was slightly lower (adjusted EBITDA $2,016m vs $2,050m prior year, ~2% decline) due to market headwinds.
Read all updates
Q4-2025 Updates
Positive
Negative
Resilient Underlying Profit
Underlying net profit of approximately $1.00 billion (FY2025) — maintaining the ~$1 billion platform for consecutive years; underlying EPS $0.564 and ROE of 18.2%.
Read all positive updates
Company Guidance
The guidance emphasized steady returns and measured growth despite near‑term headwinds: management proposed a FY2025 final dividend of $0.16 (total $0.25, +9% vs 2024) and signalled steady dividend increases as cash flow grows; the Alinta acquisition is expected to complete in H1 2026 (one‑off transaction costs ≈AUD208m). Near‑term headwinds for 2026 include recontracting in Singapore (≈5% of Sembcorp portfolio) and Senoko (≈47–50% of its portfolio) at blended spark spreads of about $30–35 (vs prior highs ~$70–80), partly mitigated by operational/financial synergies and a 600 MW hydrogen‑ready plant due Q4 2026. Renewables will keep expanding (2025 additions 3.6 GW; group capacity 20.4 GW, 5.4 GW secured for 2026–2030) but China curtailment rose (wind 14% v 8%, solar 16% v 9% in 2025) causing ~US$30m impact in 2025 and a ~$12m VAT refund policy headwind for 2026; IUS growth includes 800,000 sqm of ready‑built factories in 2026–27, leasable GFA 1.1m sqm and 96% occupancy. Key financial anchors: FY2025 turnover $5.8bn, adjusted EBITDA ~$2.02bn, underlying net profit ≈$1.00bn (EPS $0.564), ROE 18.2%; balance sheet/net liquidity: net debt ≈$7.8bn, cash $1.1bn, unutilized committed facilities $2.5bn (on‑demand liquidity ~$3.6bn), net debt/EBITDA 3.9x, 2025 investments ~$1.2bn and free cash flow before expansion ≈$2.1bn (≈$1.7bn excl. SembWaste proceeds).Sembcorp Industries Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
49
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.80B | 6.42B | 7.04B | 7.83B | 6.41B |
| Gross Profit | 1.29B | 1.50B | 1.57B | 1.23B | 819.00M |
| EBITDA | 1.33B | 2.07B | 1.83B | 1.29B | 677.00M |
| Net Income | 984.00M | 1.01B | 942.00M | 848.00M | 279.00M |
Balance Sheet | |||||
| Total Assets | 18.43B | 18.18B | 15.50B | 16.02B | 14.39B |
| Cash, Cash Equivalents and Short-Term Investments | 1.22B | 985.00M | 830.00M | 1.29B | 1.43B |
| Total Debt | 10.39B | 9.40B | 7.56B | 7.36B | 7.65B |
| Total Liabilities | 12.56B | 12.52B | 10.63B | 11.80B | 10.48B |
| Stockholders Equity | 5.54B | 5.36B | 4.59B | 3.98B | 3.77B |
Cash Flow | |||||
| Free Cash Flow | 148.00M | -196.00M | 645.00M | 1.04B | 929.00M |
| Operating Cash Flow | 1.10B | 1.41B | 1.48B | 1.65B | 1.22B |
| Investing Cash Flow | -517.00M | -1.44B | -878.00M | -1.39B | -100.00M |
| Financing Cash Flow | -335.00M | 154.00M | -1.10B | -203.00M | -855.00M |
Sembcorp Industries Technical Analysis
Positive
6.39
Price Trends
6.05
Positive
6.09
Positive
6.36
Positive
Market Momentum
0.06
Negative
69.46
Neutral
93.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:U96, the sentiment is Positive. The current price of 6.39 is above the 20-day moving average (MA) of 5.95, above the 50-day MA of 6.05, and above the 200-day MA of 6.36, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 69.46 is Neutral, neither overbought nor oversold. The STOCH value of 93.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:U96.
Sembcorp Industries Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | S$15.21B | 8.73 | 28.61% | 3.46% | 0.42% | 40.48% | |
68 Neutral | S$1.29B | 12.43 | 19.05% | 4.77% | 4.84% | 0.79% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | S$11.37B | 10.88 | 18.30% | 4.33% | -6.69% | 6.76% | |
63 Neutral | S$7.76B | ― | 4.03% | 0.70% | 25.68% | ― | |
62 Neutral | S$5.27B | 16.71 | 9.76% | 1.44% | 10.26% | 30.63% | |
57 Neutral | S$21.50B | ― | 8.75% | 3.29% | -0.62% | 34.52% |
* Utilities Sector Average
SG:U96
Sembcorp Industries
6.39
0.30
4.96%
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Sembcorp Industries Corporate Events
Sembcorp strengthens board with appointment of Temasek executive as alternate director
Feb 25, 2026
Sembcorp Industries has appointed Dinesh Khanna as alternate director to Prof Uwe Krueger, effective February 25, 2026. Khanna is currently Joint Head of the Portfolio Development Group at Temasek International, where he works closely with portfol...
Sembcorp Industries Details Attendance at 2026 Extraordinary General Meeting
Feb 19, 2026
Sembcorp Industries has disclosed the minutes of its extraordinary general meeting held on January 30, 2026, in Singapore, detailing official attendance and proceedings. The document records the presence of the board of directors, key executives, ...
Sembcorp Boosts Power Supply to Micron to Support Singapore Chip Expansion
Jan 28, 2026
Sembcorp Industries has expanded its long-term power purchase agreement with Micron Semiconductor Asia Operations, increasing contracted power supply to Micron’s Singapore production facilities by 150MW on top of the existing 450MW, while ma...
Sembcorp Completes Acquisition of 245MW Renewable Portfolio in Vietnam
Dec 10, 2025
Sembcorp Industries has completed the acquisition of a 245MW renewable energy portfolio in Vietnam, marking a significant expansion of its renewable energy assets. This acquisition enhances Sembcorp’s position in the renewable energy market,...
Sembcorp Considers Alinta Energy Acquisition
Dec 8, 2025
Sembcorp Industries is considering potential acquisition opportunities, including Alinta Energy, as part of its strategic initiative to enhance shareholder value. Discussions are ongoing, and no definitive transaction has been finalized. Stakehold...
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.