“CSE Global posted FY2025 net profit of $37.5m, up 42% y-o-y, beating our estimates and Bloomberg consensus estimates at 110% and 108% respectively, fueled by lower-than-expected admin costs and tax savings,” states both Tan and Lim.
Both analysts mentioned that CSE Global’s management foresees some elevated operating costs persisting into FY2026 given scaling requirements and higher absolute activity levels.
However, management believes that FY2025 is likely to have captured the bulk of one-off start-up costs, with FY2026 expected to benefit from better EBITDA and net margins as revenue increases.
“We expect electrification revenue growth in FY2026 to outpace FY2025’s growth rate of 17% y-o-y, supported by a record-high electrification order intake of $593 million and a strong order book of $462 million,” both analysts predict.
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From the team’s perspective, they believe that Amazon Web Services (AWS) will anchor CSE Global’s FY2026 growth under a five-year, $1.5 billion alliance, with the new 241,000 sq ft Champion facility tripling existing AWS capacity, positioning CSE Global for multi-year volume ramp-up as production expands.
The CGS International team adjusted FY2026’s earnings per share (EPS) by 2% and flat for FY2027 on higher revenue recognition from the existing orderbook for FY2026. Target price remained at $1.50, based on 19 times FY2027 P/E ratio, which is +1 standard deviation above 10-year mean.
For RHB Bank Singapore analyst, Alfie Yeo, he sees CSE Global’s earnings before interest tax (EBIT) margin for FY2025 below his estimates at 5.2% due to a lower gross profit margin (27%, down 1 percentage points y-o-y) and a lower mix of communication segment’s revenue.
“We raise FY2026 and FY2027 earnings by a marginal 1% and 2% respectively. Our revenue estimates are increased by 7% each as we expect Amazon orders to scale up going forward, offset by higher expenses and lower margins, in preparation for the ramp up in Amazon’s orders,” says Yeo.
Yeo expects CSE Global to continue witnessing strong revenue growth going forward, backed by Amazon orders, which will support strong earnings growth projection over the next few years.
“We now peg the stock from 20 times to 22 times FY2026 P/E, in view of positive fund flows that will provide tailwind and support for valuation in the Singapore market,” explains Yeo.
Yeo keeps his “buy” call on CSE Global with a new target price of $1.48, from the previous target price of $1.22. This represents a 12% upside and a 3% dividend yield for FY2026.
Maybank Securities analyst, Jarick Seet, sees CSE Global as a “proxy for AI data centres in the US”. Currently, CSE Global has an orderbook of $709.5 million as of Dec 31, 2025.
“The new lease site for its key data centre customer will be ready by April, after which we expect revenue from this customer to ramp up significantly. CSE Global secured a US$143 million order back in Dec 2025 from this customer and the order is slated for completion in 2026. We expect CSE Global to secure $1.1 billion of orders in 2026.
For FY2026, Seet expects CSE Global’s net margins to improve slightly to 4% as there are still expansion costs needed for its data centre operations despite the growth in revenue.
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“We remain bullish on CSE Global’s outlook and see potential for a multi-year growth story. The company expects to more than triple capacity by FY2027 and FY2028, and we believe it will secure another data centre client by 1QFY2027,” predicts Seet.
As such, Seet maintains “buy” and raises CSE Global’s FY2026 and FY2027’s PATMI by 10.5% and 23.8% respectively, and lifts his target price to $1.52 from $1.20. The higher target price derives from a higher FY2026 P/E of 25 times from 20 times.
UOB KayHian analysts, John Cheong and Heidi Mo, believes that while FY2025 margins were weighed down by project provisions and expansion costs, the scale and quality of recent contract wins provide strong medium-term revenue visibility.
"Execution discipline and working capital normalisation will be key to translating the record order pipeline into improved operating leverage in FY2026," both analysts explain in their Feb 27 report.
Meanwhile, CSE Global's net debt position more than doubled to $163 million, compared against FY2024's figure of $72 million, with net gearing rising from 0.28 times to 0.59 times.
"While leverage remains manageable, we note that balance sheet intensity increased alongside project expansion," explains both Cheong and Mo.
Hence, the team is keeping "buy" on CSE Global with a higher target price of $1.43, from the previous target price of $1.22. The higher target price arises from earnings upgrade and applying a higher valuation peg.
"Our target price is based on 25 times FY2026 PE (+1.5 standard deviation to mean), up from 21 times (+1 standard deviation to mean) previously on improving margins, record-high order intake and continued growth in US electrification. We expect continued earnings momentum and stronger operating leverage moving forward," concludes the team.
Beansprout analyst, Ng Hui Min, in her Mar 2 report, states that CSE Global's electrification segment was the key growth engine for 2HFY2025, given that revenue climbed 34% y-o-y to $292.3 million, supported by data centre and LNG contracts in the Americas, with AWS orders beginning to flow from December.
"EBITDA was stable at $20.9 million but margin compressed to 7.1% due to wastewater provisions (including a $1.7 million revenue reversal) and higher ramp-up costs (labour, facilities and equipment)," says Ng.
From Ng's perspective, CSE Global is expecting a healthy FY2026 with current order book level of $709.5 million, supported by a resilient "flow" business (71% of revenue in FY2025 versus 69% in FY2024). Ng adds that the company is prioritising Electrification and Communications, with data centres a key driver.
As such, she is maintaining "buy" on CSE Global with a higher target price of $1.45, from the previous target price of $1.40. The higher target price is based on a rolled-forward DCF, implying a 13.3% upside.
"At $1.45, CSE Global would trade at 22.8 times FY2026F P/E with 1.9% forward yield. Valuation remains attractive versus US electrical/power infrastructure peers, with CSE Global at 11.4 times forward EV/EBITDA and 20.2 times forward P/E versus peer medians of 16.2 times and 27.6 times," Ng concludes.
As of 4.49pm, shares in CSE Global are trading 3 cents lower, or 2.27% down at $1.29.
