With resilient earnings, a record order book and rising demand from the data centre and infrastructure sectors, CSE Global is sharpening its competitive edge as a trusted systems integrator well-positioned for the next phase of global electrification and digital transformation. The home-grown systems integrator — with solutions spanning electrification, communications and automation — continues to boast steady growth in the face of global market uncertainty. 

In the 1HFY2025, the group reported a 2.8% y-o-y increase in revenue to $440.9 million and an 8.5% rise in net profit to $16.3 million, underpinned by strong performance in its communications segment and improved margins across key business segments. “Resilience to us means the ability to navigate the evolving operating environment and building structural agility — financially, operationally and technologically — to deliver consistent results regardless of market cycles,” says Lim Boon Kheng, CSE Global’s managing director and group CEO. “By adopting best practices, being attuned to customers’ requirements, and maintaining disciplined cost management, we have demonstrated our resilience in delivering growth and sustainable returns.”

A steady operation

Lim’s emphasis on resilience is not rhetorical. About 90% of CSE Global’s customers are repeat clients, including government organisations and renowned global brands — a testament to its reliability in delivering complex, mission-critical systems.

“Unlike niche vendors or hardware suppliers, we integrate across the full lifecycle — from design to commissioning to maintenance — which makes us a trusted partner rather than just a contractor,” Lim notes. “This trust, earned through consistency, engineering excellence and customer focus, continues to set CSE Global apart from competitors.”

That trust has translated into tangible performance. In the 1HFY2025, the group’s communications business grew 12.7% y-o-y to $128 million, buoyed by contributions from newly acquired US-based subsidiaries that added $17 million in revenue. The electrification segment, which accounted for nearly half of total revenue, saw its ebitda rise 14.4% y-o-y to $24.8 million, supported by stable gross margins and a one-off gain from asset disposal.

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The automation segment, while posting a marginal decline in revenue to $98.1 million, remains strategically important. It anchors CSE Global’s foray into emerging areas like cybersecurity and artificial intelligence (AI)-based process optimisation, which are technologies that Lim believes will reinforce the group’s long-term competitiveness.

“Technology is at the heart of what we do as systems integrators,” he says. “We continually expand our engineering capabilities and technology solutions to pursue new market opportunities brought about by the emerging trends towards urbanisation, electrification and decarbonisation.”

Data centres lead the charge

Nowhere are those trends more visible than in CSE Global’s electrification business. The company has quietly emerged as a key systems integrator for the booming data centre market, particularly in the US, where it has secured multiple large-scale power management projects.

“Growth in this segment continues to be driven by strong demand from the data centre and utility markets, particularly in the US,” says Lim. “One of our contract wins this year includes major contract variations worth US$46 million [$59.3 million] covering design, engineering, fabrication, installation, and integration of power-management systems.”

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With the rise of AI and the global drive towards decarbonisation, Lim believes these megatrends will continue to fuel demand for CSE Global’s electrification, communications, and automation solutions. “We see ourselves as problem-solvers and enablers of transformation, finding the right solutions to our clients’ problems and achieving their objectives in a sustainable manner,” he shares.

The group’s communications business is another bright spot. Lim says the recent acquisition of the US-based wireless communication solution provider Chicago Communications, completed in April 2025, bolsters the group’s footprint in the US — to four states now — and deepens its expertise in critical communications and security solutions. He adds: “These targeted acquisitions are part of our plan to build scale and deepen customer relationships in key markets. Together with earlier acquisitions such as RFC Wireless, we have further enhanced our ability to deliver communications solutions to a wider base of customers across the Americas.”

While acquisitions have expanded CSE Global’s reach, the group has remained disciplined in execution. Despite cost pressures from inflation and higher personnel and equipment expenses, CSE Global kept gross margins stable at about 27.9% in the 1HFY2025.

“We have a disciplined approach to project selection, tight cost management including leveraging scale in procurement, and efficient project execution,” Lim explains. “While operating expenses rose 6.2%, our focus on productivity, efficiency and prudent procurement allowed us to maintain stable net profit margins at 3.7%.”

That financial discipline extends to its capital management. Earlier this year, CSE Global announced a minimum 50% dividend guidance, balancing shareholder returns with reinvestment for growth. “The dividend guidance announced by the board on April 2 is a balanced approach between providing immediate returns to shareholders while retaining sufficient earnings to fund future growth,” Lim says. “We remain focused on maintaining a strong balance sheet and disciplined cash flow management so that we are ready for strategic opportunities, whether through securing large projects or enhancing our suite of capabilities through acquisitions.”

As at the 1HFY2025, the group’s order book stands at $573.8 million, providing strong visibility into the second half and beyond. Importantly, over 60% of revenue is tied to recurring business, thanks to long-term maintenance and smaller greenfield project work.

“The nature of our backlog is increasingly tied to long-cycle investments such as data centres and energy transition projects where demand is supported by underlying megatrends,” Lim notes. “This provides good visibility for the second half of 2025 and positions us well for sustained performance ahead.”

US growth, recurring revenue and digitalisation

Lim is clear that CSE Global’s expansion priorities remain centred on key developed markets such as the US, Australia and New Zealand — regions with strong infrastructure and digitalisation demand. “Strategic acquisitions remain a core pillar of our growth strategy. Through these, we expand our footprint, strengthen our solutions, and enhance our relevance in a rapidly evolving market,” he says.

The company’s push into the data centre sector, in particular, is reshaping its business mix. “Contracts in this sector have gained momentum as illustrated through the new major data centre contracts secured this year,” Lim says. “Our differentiation lies within our ability to design and build integrated, mission-critical systems that combine engineering expertise with proven execution.”

At the same time, the group is carefully cultivating recurring revenue streams from maintenance contracts, ensuring stable cash flow even during cyclical downturns. “We focus on converting our projects to maintenance contracts upon completion to boost our recurring revenue base, which provides earnings visibility and smooths volatility across cycles,” he adds.

The next phase

Despite global inflationary pressures and geopolitical risks, CSE Global’s fundamentals remain strong. The company’s diversified portfolio across sectors, regions, and revenue types provides natural hedges against volatility. Lim says: “Our business is diversified across geographies and sectors, allowing us to mitigate market risks. At the same time, we remain prudent in capital allocation, balancing dividend payments with reinvestment into our business and capacity expansion.”

That balance between growth and prudence has allowed the group to build a foundation for sustainable value creation. As investors increasingly turn their focus toward companies positioned at the intersection of energy transition and digital infrastructure, CSE Global’s consistent performance, strong order book, and expansion in data centres give it a competitive edge.

Lim, who has led the group since 2016, attributes much of this success to a deeply ingrained engineering culture. “Everything we do is driven by our commitment to solving problems and providing the right solutions according to customers’ requirements,” he reflects. “Over the years, we have built a culture that values integrity, teamwork, and accountability. This empowers us to take on large-scale complex projects and deliver them safely, effectively, and on schedule.”

For the FY2026, CSE Global’s immediate priorities are clear: convert its robust order book into revenue, strengthen its engineering capabilities, and seize opportunities arising from megatrends such as urbanisation, electrification, decarbonisation, and artificial intelligence. “We remain focused on executing well, maintaining healthy margins, and aligning ourselves with industry growth drivers — all of which will drive long-term shareholder value,” Lim says.