This article first appeared on GuruFocus .
Release Date: February 25, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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OKP Holdings Ltd ( SGX:5CF ) achieved record revenue of SGD223.5 million in FY 2025, marking a 22.9% increase from the previous year.
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Net profit attributable to equity holders rose by 31.3% to SGD44.3 million, showcasing strong financial performance.
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The company secured two significant public sector contracts worth approximately SGD280.9 million, bolstering its order book.
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Gross profit margin improved to 32.4%, driven by stronger margins in the construction segment.
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The board proposed a higher quantum of total dividends, including a special dividend, enhancing shareholder value.
Negative Points
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Rental income decreased by 43.7% due to ongoing renovations and tenant transitions, impacting overall revenue.
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The maintenance segment experienced softer margins as projects progressed into more active phases with higher costs.
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Despite strong revenue growth, rental income only contributed 1.5% to the total revenue, indicating limited diversification.
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The construction sector's growth in Singapore moderated in the fourth quarter of 2025, reflecting potential future challenges.
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The sale of properties at Kampong Bahru Road was undertaken, which may affect future rental income streams.
Q & A Highlights
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Q: Can you elaborate on the factors that contributed to the strong revenue growth in FY 2025? A: Toh Wat Or, Group Managing Director, explained that the revenue growth of 22.9% to SGD223.5 million was primarily driven by higher contributions from the construction and maintenance segments. The construction segment saw a 35.6% increase, while the maintenance segment grew by 6.2%. This was partly offset by a 43.7% decrease in rental income due to renovations and tenant transitions.
Q: How is the company planning to enhance shareholder value in light of the recent financial performance? A: Toh Wat Or stated that the board has recommended a higher dividend payout, including a special dividend of $1.3 per ordinary share, in addition to a final one-tier dividend of $0.7 per share. This decision follows a proposed bonus issue of three bonus shares for every four existing shares, reflecting the company's commitment to rewarding shareholders.
Q: What are the key projects contributing to the current order book, and how do they impact future earnings visibility? A: The Group Managing Director highlighted that the order book stands at SGD588 million, with projects extending until 2031. Key projects include infrastructure work at Cleantech Loop and new cycling path networks in Singapore. These projects underscore OKP Holdings' strong track record and provide clear earnings visibility.
Q: Could you provide more details on the performance of the property investment segment? A: Toh Wat Or noted that the property investment segment faced a decrease in rental income to SGD3.4 million due to renovations and tenant transitions. However, properties like 35 Kreta Ayer Road and Kampong Bahru Road contributed positively. The Australian property continues to generate stable rental income, with ongoing improvements expected to enhance long-term value.
Q: What is the company's strategy for navigating the current macroeconomic environment and ensuring sustainable growth? A: The Group Managing Director emphasized a focus on operational discipline, leveraging technology and innovation to enhance productivity, and managing cost pressures. The company is committed to safety and environmental sustainability, aligning with the Singapore Green Plan, to ensure responsible growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
