ComfortDelGro H2 earnings up, hits record S$5 billion revenue

[SINGAPORE] Transport operator ComfortDelGro (CDG) reported a 7.9 per cent year-on-year rise in earnings to S$124.3 million for the second half of the financial year 2025 ended December.

H2 revenue was up 11.7 per cent at S$2.6 billion, from S$2.4 billion in the corresponding year-ago period. In particular, revenue from its public transport business was 8.2 per cent higher at S$1.7 billion.

On a per-share basis, earnings increased to S$0.0574 from S$0.0532.

Its full-year revenue, at S$5.1 billion, breached the S$5 billion mark for the first time, as international market revenue contributions topped 50 per cent.

“(For) the first time, our total revenue exceeds S$5 billion while international revenue stood over 50 per cent. This outcome reflects the management’s focused execution of our growth strategy over the past three years,” said CDG chairman Mark Greaves.

Increased contributions from other regions included the commencement of UK Metroline Manchester bus contracts, London bus contracts renewed at improved margins, and the completed acquisition of private hire and taxi outfit Addison Lee.

Back home, increased Singapore rail fare revenues also contributed though these were partially offset by the transfer of the Jurong West bus package.

Meanwhile, operating profit from the public transport segment rose 35.3 per cent to S$101.5 million. The group stated this was mainly due to a gain on the disposal of Victoria bus depots as part of newly awarded contracts, contributions from the abovementioned Manchester contracts and improved margins on UK Metroline London bus contracts.

Its taxi and private hire vehicle business revenue surged 21.7 per cent to S$512.6 million, mainly from the incremental revenue from Addison Lee, which was offset by a decrease in the taxi fleet size in Singapore. However, operating profit for this segment fell 25.2 per cent to S$53.9 million.

This decline was mainly attributed to lower revenue contributions in Singapore, alongside higher amortisation expenses of intangible assets arising from the A2B and Addison Lee acquisitions.

Its inspection and testing services segment revenue for the half was up 55.7 per cent at S$96.4 million and operating profit increased 85.4 per cent to S$33 million, mostly as a result of the peak volume of installations of on-board units for Singapore’s Electronic Road Pricing 2.0 system.

For the second half, revenue from its other private transport segment grew 7.5 per cent to S$250.2 million, contributed by ground transport and accommodation provider CMAC in the UK, but offset by lower contributions from Australia non-emergency patient transport. Operating profit for the segment came in at S$11.3 million, representing a 21.5 per cent drop from S$14.4 million in the second half of 2024.

For FY2025, the group posted a 9.4 per cent improvement in earnings to S$230.3 million, from S$210.5 million. Its top line increased 13 per cent to S$5.1 billion, from S$4.5 billion.

A final dividend of S$0.0459 per share has been proposed, which takes the total dividend for the year to S$0.085 per share, inclusive of the interim dividend of S$0.0391 per share. This represents a payout ratio of 80 per cent of profit after tax and minority interests.

It will be paid on May 13, subject to shareholder approval.

New reach

ComfortDelGro’s managing director and group CEO, Cheng Siak Kian, described crossing the S$5 billion revenue mark as a “defining milestone”, reflecting strong operational discipline and the focused execution of its international growth strategy.

Revenue from outside the home market of Singapore expanded to 55.3 per cent of total revenue, up from 49.1 per cent the year before, a result of the group’s focus on internationalisation in recent years.

Revenue from Singapore declined 0.9 per cent to S$2.3 billion, while UK/EU revenue increased 45 per cent to S$1.9 billion and Australia revenue was up 4.3 per cent at S$846 million.

The group’s balance sheet has reflected this expansion, with capital expenditure increasing 59.9 per cent to S$711.5 million year on year, as the group’s net gearing ratio rose to 19.7 per cent from 6.7 per cent. This was mostly a result of borrowing for the Metroline Manchester fleet and London EV buses.

CDG group chief financial officer Christopher White said the group’s balance sheet and gearing level were still “very healthy”, and the capex number is expected to return to normal after a significant year.

Rail fare increases granted by the Public Transport Council took effect from December 2025. The Tampines public bus package is scheduled for handover to a new operator from July 2026.

London public bus contract renewals are expected to continue at improved margins. The group is participating in ongoing Liverpool and West Yorkshire public bus franchise tenders, as well as the Copenhagen metro tender with RATP Dev.

In Australia, the new Metropolitan Zero Emission Bus franchises in Victoria that commenced in July 2025 will contribute in full in 2026, with industrywide shortage of bus drivers easing.

The business-to-consumer segment is expected to remain under pressure due to intense competition from ride-hailing companies.

Group CEO Cheng said that the focus for 2026 will be to accelerate integration across the group and strengthen its future readiness, as well as improving efficiency through the use of artificial intelligence (AI) and other technologies.

The group is aggressively developing autonomous vehicle (AV) capabilities, with Cheng announcing a new target of making 10 per cent of its point-to-point transport fleet AVs by 2030.

This involves scaling existing operations in China and Singapore, such as its pilot project with AV company Pony.ai in Guangzhou, China, and the Zig Driverless AV shuttle familiarisation programme in Singapore. It is also exploring pilot projects in London.

Cheng added that the use of AI is helping the group improve its customer experience – including interactions with them and providing information on arrival times – which is helping to generate more business opportunities.

ComfortDelGro’s shares closed on Friday at S$1.55, up 1.3 per cent or S$0.02, before its financial results were posted.