Soilbuild Construction Group is an A1-graded construction company with nearly 50 years of experience, specialising in residential and commercial property development. Its strong track record in delivering a distinguished portfolio of residential and business space developments positions the group well for future tenders across both public and private sectors.
1. What is Soilbuild Construction’s business about, and what are some of its key business segments?
Soilbuild Construction Group is a leading builder with nearly 50 years of experience, specialising in residential and business space properties. We offer a full spectrum of real estate services, including design and build, construction, turnkey construction, project management consultancy, procurement and mechanical and electrical Installation.
The group’s traditional strength lies in the industrial and business sectors, with a niche in the construction of high-value or high-specification industrial and business facilities.
With our focus as a green builder, the group has also been involved as the main contractor for numerous projects with Green Mark Platinum and super low energy certifications.
We have recently completed a LEED zero-carbon and Green Mark zero-energy warehouse facility.
Precast Concrete, a subsidiary, manufactures prefabricated and precast building components and operates an integrated construction and prefabrication hub in Singapore, as well as a manufacturing plant in Malaysia.
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2. Soilbuild Construction’s revenue surged 58.4% in FY2024, with the construction segment growing 53.1% and precast and prefabrication growing 87.1%. What were the key contributors to this growth?
We concluded FY2024 with a strong set of results. We also reached a key business milestone by securing the largest construction project in our history. We concluded FY2024 with a strong set of results. We also reached a key business milestone by securing the largest construction project in our history — a $647.5 million contract for PSA Supply Chain Hub @ Tuas, boosting our order book to more than $1 billion.
The Building and Construction Authority (BCA) projects construction contracts to be valued between $47 billion and $53 billion in 2025. Over the medium term, BCA expects annual construction demand to average between $39 billion and $46 billion from 2026 to 2029.
With the positive outlook of the construction industry in Singapore, coupled with improved revenue visibility from our strong pipeline of projects, and our multi-category presence in the construction industry and track record as a green builder, the group will continue to focus on unlocking the benefits of our scale to further enhance our cost efficiencies and strengthen our order book.
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3. The construction division has contributed 81.5% of the total revenue. Will there be any plans to diversify the revenue streams?
The construction division remains our core business foundation, supported by nearly 50 years of heritage.
To address manpower constraints and concerns about productivity growth, we have invested in highly automated manufacturing processes through the integrated construction and prefabrication hub, which was awarded by the BCA in 2016. Since then, we have also expanded our presence in the precast industry with the establishment of a precast facility in Malaysia. The precast segment has contributed approximately 18% to FY2024 revenue, with potential for further growth.
To strengthen our competitive edge, we will continue to explore new construction methods, precast and prefabrication technologies, and incorporate digitisation, sustainability, and robotics into our operations, further solidifying our foothold within the construction industry.
4. Soilbuild Construction generated $35.9 million in operating cash flow in FY2024, significantly improving liquidity. How does the company plan to deploy this cash?
We plan to strategically deploy our cash resources to strengthen our working capital, ensuring financial flexibility for ongoing projects and future growth.
Additionally, we are committed to prudent financial management by reducing borrowings to lower interest expenses and enhancing financial resilience.
Together, these steps reflect our disciplined approach to capital allocation, balancing immediate operational needs with the goal of building a stronger, more agile, and sustainable financial foundation.
5. Does the group have any dividend policy?
While the group does not have a dividend policy, we are committed to rewarding shareholders.
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Following a turnaround in FY2023, we issued a final dividend of 1 cent* per share. Given the strong results in FY2024, the group has proposed an interim dividend of 1 cent* per share, a final dividend of 1 cent per share and a special dividend of 1 cent per share, bringing the total dividends for FY2024 to 3 cents per share.
Notably, the special dividend gives us a one-off opportunity to share our successes in FY2024 in a meaningful way with our shareholders.
6. With the local public sector construction demand set to hit $31 to $38 billion annually from 2025 to 2028, how is Soilbuild Construction positioning itself to secure a larger slice of public contracts?
With our subsidiaries holding A1 BCA grading, Soilbuild can tender for unlimited-value public sector projects.
A key strength of the group lies in our multi-category presence within the construction industry, where our expertise enables us to serve various market segments from large-scale industrial and business space facilities to residential developments.
Our Precast Division is also well-positioned to meet the demand for precast and prefabrication components in public contracts. Over the past few years, the group has developed strong technical expertise and a proven track record with our Integrated Construction and Prefabrication Hub in Singapore and a precast manufacturing plant in Malaysia.
7. Rising raw material and labour costs continue to challenge the construction sector. How is Soilbuild Construction managing these cost pressures while maintaining margins?
In light of an inflationary environment, managing cost pressures while safeguarding margins remains a key operational priority for the group. We continue to adopt a disciplined and proactive approach across every stage of our project cycle.
Operationally, we are focused on optimising resource use, minimising wastage, and enhancing labour productivity. We leverage technology, such as real-time project monitoring systems and Building Information Modelling (BIM), for tighter cost control and improved risk management.
Financially, we maintain strong working capital discipline and diversify our project portfolio to manage sector-specific risks without compromising on quality or delivery timelines.
Looking ahead, by striking a balance between operational resilience, financial prudence, and continuous innovation, we aim to maintain healthy project margins and strengthen our order book.
8. With AI and smart infrastructure becoming more prevalent, is Soilbuild Construction exploring these technologies to enhance project execution and lifecycle management?
At project tenders, the group utilises the BIM models to generate fly-through videos of the internal and external spaces of the project, giving our clients a good sense and feel of how their building will look post-completion, enabling the group to form a deeper connection with our clients.
When executing projects, we utilise our BIM models during regular progress meetings to provide customers with a 3D perspective and give clients a clear understanding of their floor plate. This enables them to start planning for the space’s fit-out even before completion, saving time and resources.
We have also implemented the use of AI technologies for our site monitoring purposes, highlighting possible high-risk activities or safety infringements, allowing our site team to quickly attend to such activities, ensuring a safe work site for everyone.
9. Singapore’s BCA has introduced sustainability-related criteria for tender evaluation. How is Soilbuild Construction adapting its bidding strategy to maximise contract wins under this new framework?
For public sector tenders, up to 5% of evaluation points will be allocated to sustainability-related considerations. Soilbuild Construction has been an early adopter of green building initiatives, with our focus as a green builder dating back to 2008. We believe that our track record and established strengths as a green builder were pivotal in the group’s successful tender for the largest construction project in our history — a $647.5 million contract for PSA Supply Chain Hub @Tuas.
Moving forward, as we focus on sustainable growth, operational excellence, and long-term value creation, we will continue to align our business activities with environmental, social and governance (ESG) principles in key aspects of our operations.
10. What are Soilbuild Construction’s top three strategic priorities for the next five years, and how do they align with its long-term vision and evolving market trends?
Over the next five years, the group will focus on three key strategic priorities:
Strengthening order book: We will pursue quality projects that align with our core competencies and offer attractive risk-adjusted returns. By being highly selective in project tendering and emphasising financial discipline, risk management, and long-term client partnerships, we aim to ensure a healthy and resilient project pipeline.
Enhancing talent pool: Recognising the importance of attracting, nurturing, and retaining high-calibre professionals, we will invest in comprehensive training and upskilling initiatives to build a future-ready workforce across all operations.
Harnessing innovations and emerging technologies: By integrating advanced construction methods, digital tools like BIM, and sustainable practices, we aim to stay ahead of industry trends and deliver more value propositions to our clients.
Collectively, these strategic priorities will align the group towards long-term resilience, strengthen our competitive edge, and create sustainable value for our stakeholders.
10 in 10 – 10 Questions in 10 Minutes with SGX-listed companies
Designed to be a short read, 10 in 10 provides insights into SGX-listed companies through a series of 10 Q&As with management. Through these Q&As, management will discuss current business objectives, key revenue drivers, and the industry landscape. Expect to find a wide range of topics that go beyond the usual company financials.
Emelia Tan is director of research and FinLit at SGX Group
