Singapore's CSE Global 1H revenue rises on electrification segment growth

CSE Global

13/08/2026 10:50

Overview
Singapore systems integrator's 1H2026 revenue rose 27.4% yr/yr, driven by Electrification segment
Gross margin declined to 23.8% from 27.9%, reflecting shift to lower-margin projects
Adjusted net profit for 1H2026 fell 12.4% yr/yr due to higher costs and lower margins

Outlook
Company expects good revenue visibility for remainder of year, supported by strong order book
Earnings growth in FY2026 expected to be moderate due to investments 
Company continues targeted investments to support next phase of growth

Result Drivers
ELECTRIFICATION SEGMENT - Revenue growth was mainly driven by higher project revenues from the Electrification business segment in the Americas, especially data centre projects
LOWER-MARGIN PROJECTS - Gross margin declined due to a higher contribution from lower-margin data centre projects and execution of large greenfield Electrification projects
HIGHER COSTS - Net profit fell due to increased personnel costs, expenses for new manufacturing facility, and costs from wind-down of water and wastewater projects

Company press release: ID:nSNbYJCxK

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
S$561.47 mln
 
H1 Net Income, after non-recurring items
 
S$13.16 mln
 
H1 Gross Margin
 
23.80%
 
H1 Gross Profit
 
S$133.74 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy."
Wall Street's median 12-month price target for CSE Global Ltd is S$1.97, about 53.9% above its August 12 closing price of S$1.28
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads
Aug 11 - Netherlands' TKH Group Q2 revenue rises on electrification growth
Aug 12 - Singapore's ST Engineering H1 revenue, profit rise, partly on strength in commercial aerospace
Aug 13 - India's Black Box secures $131 mln data centre order from U.S. hyperscaler

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)