DEAR SHAREHOLDERS,
2025 marked a year of strong progress for Keppel. Amidst a turbulent and uncertain global backdrop, set against geopolitical tensions and economic volatility, we remained focused on advancing Keppel's growth as a global asset manager and operator.
Since announcing the Company's strategic transformation in May 2023, we have steadily accelerated the growth of the New Keppel1 - sharpening our focus, strengthening our asset-light model and growing recurring income. Our goal is clear: to deliver strong returns to our Limited Partners (LPs) and shareholders, while creating real assets and solutions that address the world's pressing needs, from sustainable development to the growing demand for digital connectivity.
Delivering Strong Performance
Keppel delivered a strong set of results in FY 2025. To provide greater clarity on the Company's progress in transformation, we have distinguished the earnings of the New Keppel from the $13.5 billion2 portfolio of non-core assets that are no longer aligned with our strategy and will be divested over time.
In FY 2025, the New Keppel's net profit surged 39% year on year (yoy) to $1.1 billion, supported by broad-based earnings growth across Infrastructure, Real Estate and Connectivity. Our Infrastructure Division achieved record profit of $703 million3 despite moderating spark spreads, reflecting the resilience of its integrated power business and growing contributions from decarbonisation and sustainability solutions.
Including the non-core assets and discontinued operations, overall net profit for FY 2025 was $789 million, compared with $940 million in FY 2024, mainly due to a $222 million4 accounting loss arising from the proposed sale of M1’s telco business.
Beyond the headline earnings, both income quality and returns of the New Keppel continued to strengthen. Recurring income from asset management5 and operations6 grew 21% yoy to $941 million in FY 2025, reinforcing the stability of our earnings base. Return on Equity7 of the New Keppel rose to 18.7% in FY 2025, up from 14.9% in FY 2024, while Net Debt to EBITDA8 improved to 2.0x as at end-2025, compared to 2.3x a year ago.
During the year, we remained laser-focused on optimising both the pace of divestment and exit value of our assets. We announced the monetisation of about $2.9 billion in assets in 2025, including the proposed sale of M1’s telco business, which is pending regulatory approval9. As at end-2025, our total asset monetisation announced since October 2020 had reached about $14.5 billion10, with $1.6 billion11 completed in 2025. Looking ahead, we will continue to work towards substantially monetising our non-core portfolio by the end of 2030. The value unlocked from monetisation will put us in good stead to fund the New Keppel's growth, reduce debt and also return capital to shareholders.
Creating Value For Shareholders
In 2025, Keppel delivered a total shareholder return of 58.5%12, supported by strong performance, distributions and a re-rating of the Company that reflects the market's increasing recognition of our transformation and growth strategy.
In appreciation of the support of our shareholders, the Board has proposed a final ordinary cash dividend of $0.19 per share, bringing the full-year ordinary cash dividend to $0.34 per share. This represents a payout ratio of approximately 56% of the New Keppel's net profit for FY 2025.
In addition, we aim to pay special dividends of 10-15% of the gross value of monetisation transactions completed during the financial year. The actual percentage each year would depend on the Company's growth needs and cash generated. Given the $1.6 billion of asset monetisation completed in FY 2025, the Board has proposed a special dividend of approximately $0.13 per share, comprising $0.02 per share in cash and one Keppel REIT unit for every nine Keppel shares held, which is equivalent to about $0.11 per share13 based on Keppel REIT's closing price of $0.98 on 3 February 2026.
Including the interim cash dividend of $0.15 per share paid in August 2025, the total dividend for FY 2025 amounts to approximately $0.47 per share, which is 38% higher yoy.
Growing As An Asset Manager and Operator
During the year, Keppel continued to strengthen its performance and capabilities as a global asset manager and operator for alternative real assets. Funds under Management14 (FUM) grew to $95 billion as at end-2025, up from $88 billion a year ago, keeping us firmly on track to reach $100 billion by end-2026, if not earlier. Reflecting the encouraging progress, asset management net profit rose 15% yoy to $189 million in FY 2025.
This growth was driven by active fundraising across our private funds and disciplined portfolio expansion within our listed REITs and infrastructure trust, which together added $10.1 billion of new FUM during the year. In Europe, Aermont Capital continued to perform well and has begun marketing Fund VI, with first close targeted in 1H 2026.
With a deal flow pipeline of $33 billion across Infrastructure, Real Estate and Connectivity, we see a strong runway to deploy capital and expand our asset management income.
With energy and digital infrastructure projects around the world growing larger and more capital intensive, Keppel’s integrated ecosystem enables us to originate, develop and scale them alongside institutional investors, thus growing our business and extending our reach beyond the limits of our balance sheet.
