CSE Global Limited reported that net profit for the first half ended Jun 30 fell 19.3% year-on-year to S$13.2 million even as revenue surged 27.4% to S$561.5 million, buoyed by brisk demand for electrification projects in the Americas’ data-centre market.
The higher top line translated into a gross profit of S$133.7 million, up 8.8% from a year earlier, though the gross margin narrowed to 23.8% from 27.9% on a shift toward larger, lower-margin data-centre contracts. Adjusted EBITDA rose 6.5% to S$41.4 million, while adjusted net profit slipped 12.4% to S$13.9 million. The board declared a one-tier, tax-exempt interim dividend of 0.91 Singapore cent per share, payable on 30 Sep 2026.
Segmentally, Electrification contributed 50.4% of revenue, climbing 63.5% YoY to S$283.0 million on higher project deliveries for hyperscale data centres in the Americas. Adjusted EBITDA for the unit improved 27.0% to S$25.4 million, although margin eased to 9.0% on lower labour utilisation, additional headcount and facility costs linked to a new manufacturing plant.
Communications revenue rose 8.9% YoY to S$139.4 million, buoyed by Australia and New Zealand contracts. Segment adjusted EBITDA inched up 2.9% to S$11.6 million, with margin softening by 0.5 percentage point as the group invested in a new Australian distribution entity. Automation was broadly flat at S$139.1 million, but adjusted EBITDA dropped 41.6% to S$4.5 million after a S$5.3 million charge tied to winding down water and wastewater projects in the Americas.
Management attributed the overall revenue momentum to robust demand for data-centre electrification, yet acknowledged pressures from higher material procurement, project-mix changes and start-up costs for the new U.S. facility. Net interest expense also climbed S$2.4 million on increased borrowings to fund expansion.
Looking ahead, CSE Global pointed to a S$620.4 million order book at end-June—up 8.1% from a year earlier—as evidence of sustained demand. The company is investing in its new manufacturing site, expanding its electrification workforce and building an Australian communications distribution arm. While these initiatives are expected to underpin long-term growth, management signalled that full-year 2026 earnings growth is likely to moderate due to ramp-up expenses, project mix and residual costs from exiting water and wastewater activities.
Group managing director and chief executive officer Lim Boon Kheng said the firm is deliberately allocating capital to areas with durable demand and scaling capabilities in line with customer requirements, noting that disciplined execution should enable CSE Global to capture opportunities and create lasting shareholder value despite an uncertain external environment.