SINGAPORE – SBS Transit Ltd reported a 13% year-on-year slide in net profit to S$61.2 million for the year ended 31 Dec 2025, as weaker bus contributions outweighed cost savings from lower fuel and electricity prices.
Group revenue fell 2.7% YoY to S$1.52 billion, while earnings per share eased to 19.59 cents from 22.52 cents a year earlier. The board recommended a final tax-exempt dividend of 8.66 cents a share and a special tax-exempt dividend of 31.99 cents, taking full-year distributions to 49.60 cents (payout ratio: 253%), inclusive of the 8.95-cent interim dividend paid in 2025.
Public Transport Services, which account for the bulk of revenue, contracted 3.0% to S$1.45 billion after the loss of the Jurong West bus package in September 2024 reduced mileage. Segment operating profit dropped 16.0% to S$45.1 million, dampened by lower bus revenue and a higher rail licence charge, though cheaper diesel and electricity partly mitigated the decline.
Other Commercial Services revenue grew 5.1% to S$62.8 million, boosted by an uptick in digital advertising campaigns. Operating profit from this segment increased 18.4% to S$23.0 million on lower staff and advertising costs.
Group operating costs decreased 2.5% to S$1.45 billion, but the saving was insufficient to offset reduced revenue, leading to a 6.9% contraction in operating profit to S$68.1 million. EBITDA slipped 6.0% to S$150.6 million. Tax expense eased 3.3% to S$12.8 million in line with lower profitability.
Management attributed the earnings decline chiefly to the expiry of the Jurong West bus contract and higher licence fees in rail. Average daily ridership rose 2.2% to 602,000 on the North East Line and 1.1% to 470,000 on the Downtown Line, while the Sengkang-Punggol LRT saw a 2.6% dip to 157,000.
Looking ahead, the operator expects bus revenue to retreat further after it loses the Tampines Bus Package in July 2026. Rail revenue should improve, supported by a fare adjustment effective 27 Dec 2025 and continued ridership gains. Chief executive Jeffrey Sim said the company would keep sharpening its bus operations and work with the Land Transport Authority to implement Rail Reliability Taskforce recommendations to enhance commuter experience.