Highlights:

• Statutory profit surged to S$25.99 million, yet Tuas shares suffered a steep decline.
• Revenue climbed 24%, supported by continued expansion across mobile and broadband services.
• FY27 cybersecurity spending could rise materially, adding a fresh cost consideration for investors.

Strong FY26, Sharp Share Decline

Tuas Limited (ASX: TUA) released its FY26 results and Annual Report on 23 September 2026, covering the year ended 31 July 2026. Despite reporting a substantial improvement in earnings, the stock came under heavy selling pressure. Tuas was trading at a current market price (CMP) of AU$1.955, moing down approximately 16.09%. The company’s financial statements are reported in Singapore dollars.

Profit Growth Accelerates

Tuas delivered FY26 revenue of S$187.62 million, up 24% from S$151.29 million in FY25. Statutory profit after tax increased 277% to S$25.99 million from S$6.90 million, while underlying EBITDA advanced 22% to S$83.79 million. Basic earnings per share rose to S$4.78 cents from S$1.48 centsThe company made no dividend payments and announced no dividend for the period.

The improvement reflected continued subscriber growth and a broader product mix. Gross mobile ARPU stood at S$9.42, while the underlying EBITDA margin remained around 45%.

Subscriber Base Expands

SIMBA’s active mobile services increased from 1.254 million at the end of FY25 to 1.458 million by 31 July 2026. Its fibre broadband operation also expanded to approximately 62,000 active subscriptions. During FY26, SIMBA upgraded more than 470 mobile sites as it increased capacity and extended 5G coverage.

Cash generation remained another positive feature. Net operating cash flow reached S$91.26 million, while cash and term deposits stood at S$498.79 million at year-end.

M1 Deal and Regulatory Risks Weigh on Sentiment

The proposed acquisition of M1 did not proceed after regulatory clearance was not secured before the transaction’s long-stop date. Tuas had raised S$322 million through an institutional placement and a further S$42.5 million through a share purchase plan, while the Board has yet to determine how the capital will be deployed. The sharp decline in Tuas shares also appears to reflect investor concern over higher FY27 spending and continuing regulatory uncertainty, despite the strong FY26 earnings result. Management expects mobile and broadband capital expenditure of S$50–S$55 million, alongside an additional S$15–S$30 million of capital and operating expenditure to meet cybersecurity requirements.

Sentiment may also have been affected by the unresolved SIMBA spectrum-use matter. Tuas continues to await the regulator’s decision, while the Annual Report states that potential consequences could include financial penalties or changes to operating licences, although no outcome had been communicated at the reporting date.

Together, the failed M1 transaction, uncertainty over the use of raised capital, elevated investment requirements and regulatory risks may have prompted investors to focus more on FY27 execution challenges than on the improvement in FY26 profitability. Tuas did not directly attribute the share-price decline to these factors, so the connection remains a market interpretation rather than a confirmed explanation.

FY27 Outlook in Focus

Management intends to pursue broader revenue growth and introduce additional products during FY27. Mobile and broadband capital expenditure is guided at S$50–S$55 million, while incremental capital and operating expenditure for cybersecurity requirements is expected at S$15–S$30 million.

The sharp share-price decline therefore contrasts with stronger FY26 operating metrics. Attention now shifts to whether subscriber and EBITDA growth can absorb higher investment requirements, cybersecurity costs and continuing regulatory uncertainty during FY27.

Note- All data presented is based on information available at the time of writing.

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