MESSAGE TO STAKEHOLDERS Despite ongoing volatility in the operating environment, gross margins remained stable at 27.0%. This underscores the Group’s prudent project selection, disciplined execution, and strong cost control. Our recurring income streams, arising from the conversion of larger projects into flow contracts upon completion (“Flow Business”), continued to provide earnings stability. The Flow Business accounted for approximately 71% of FY2025 revenue, underpinned by long-standing customer relationships. The Group generated a cash outflow from operating activities of S$67.2 million in FY2025 as a result of funding the growth in Electrification projects. The Group’s net debt position was S$163.0 million as at end of December 2025, as compared to S$72.1 million as at end of December 2024. Net gearing and net debt to EBITDA ratio as at 31 December 2025 was 0.59x and 1.95x respectively, with adequate headroom to support ongoing investments and growth initiatives. STRATEGIC POSITIONING FOR GROWTH In November 2025, we announced the proposed issuance of 63.0 million new warrants to Amazon.com NV Investment Holdings LLC (“Amazon”), with potential proceeds of up to S$48.3 million. Full vesting of the warrants is subject to qualifying payments of US$1.5 billion for the purchase of products and services by or on behalf of Amazon and its affiliates by 9 November 2030. This marks a significant step towards the Group's strategy to pursue growth in Electrification, including data centres, with a significant contract win from a leading hyperscaler. Amazon’s interest provides strong validation of our capabilities in delivering best-in-class services and integrating synergistic acquisitions. The acquisition of Chicago Communications, completed in 2025, further strengthened our presence in the U.S. communications market. Electrification remains a key growth engine, with data centre infrastructure—including hyperscale and AI data centres—now contributing approximately 14% of Group revenue and expected to grow in significance. Alongside data centres, the Group continues to remain active across liquefied natural gas, oil and gas, utilities, mining and government infrastructure. While uncertainties are expected to persist into 2026, the Group remains well-positioned to capitalise on opportunities arising from structural shifts across the industries we serve. BUILDING FOR SUSTAINABLE GROWTH CSE Global continues to pursue a clear, multi-pronged growth strategy—organically through our strong customer base and selectively through strategic acquisitions. Our focus remains on megatrends including digitalisation, urbanisation, artificial intelligence and decarbonisation, while deepening customer relationships and expanding solution capabilities. This strategy continued to deliver results in FY2025, with the Group serving high-demand sectors such as data centres, utilities, transport and energy infrastructure. We will continue to optimise operations and integrate recent acquisitions to realise synergies and enhance profitability. Supported by a healthy balance sheet, the Group is well-positioned to fund future growth. Our acquisition strategy is guided by two core priorities—deepening our presence in key markets, particularly the U.S. and Australia, and broadening our Electrification and Communications offerings. We remain disciplined and selective, focusing on value-accretive opportunities aligned with our long-term objectives. Looking ahead, the Group continues to plan capacity expansion prudently. We have acquired approximately 71 acres of land in the U.S. to support long-term operational needs, taking a measured approach to scaling. UPHOLDING STRONG CORPORATE GOVERNANCE Corporate governance remains a fundamental pillar supporting the Group’s ability to deliver sustainable value. Our governance framework is designed to support disciplined execution, sound risk management and transparent decision-making. In recognition of these efforts, CSE Global significantly improved its ranking by 56 positions to 168th in the 2025 Singapore Governance and Transparency Index (SGTI) General Category. Supported by an experienced Board and management team, we remain committed to maintaining high standards of transparency, accountability and oversight as the Group continues to grow. 6 CSE GLOBAL LIMITED
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