What Does Tuas Limited's FY26 Result Reveal as Singapore Regulatory Uncertainty Persists? — ASX

Highlights

• Tuas Limited (ASX:TUA) reported FY26 revenue of S$187.6 million, increasing approximately 24% from S$151.3 million in FY25, supported by continued subscriber growth.
• FY26 statutory EBITDA reached S$80.1 million, while underlying EBITDA increased to S$83.7 million from S$68.4 million in FY25. Statutory net profit rose to S$26.0 million.
• Active mobile services reached 1.458 million, while broadband services expanded to approximately 62,000. However, the failed M1 acquisition and ongoing regulatory investigation remain key uncertainties.

What happens when a telecommunications company delivers stronger earnings and subscriber growth while facing significant regulatory uncertainty?

That question remains relevant for Tuas Limited (ASX:TUA), following the release of its FY26 financial results on 23 September 2026.

The company reported improvements in revenue, profitability and operational scale. However, the termination of its proposed M1 acquisition and an unresolved investigation involving Singapore's telecommunications regulator continue to influence the broader investment outlook.

Tuas' financial performance demonstrates progress in its operating business, while regulatory developments, cybersecurity obligations and future capital allocation remain important considerations.

What Tuas Limited Does

Tuas Limited is an ASX-listed telecommunications company operating primarily in Singapore through its SIMBA Telecom business.

SIMBA provides mobile telecommunications and fibre broadband services, competing with established operators through its pricing structure, service offerings and network capabilities.

The company's strategy focuses on expanding its subscriber base, developing telecommunications infrastructure and increasing the adoption of broadband and mobile services.

Although Tuas is listed on the Australian Securities Exchange, its operating performance is primarily associated with Singapore's telecommunications market.

Accordingly, its financial results are reported in Singapore dollars.

The company's FY26 reporting period covered 1 August 2025 to 31 July 2026.

FY26 Revenue and Profitability Growth

Tuas reported FY26 revenue of S$187.6 million, compared with S$151.3 million in FY25, representing growth of approximately 24%.

Revenue expansion was supported by the company's growing subscriber base and broader range of telecommunications plans.

Statutory EBITDA increased to S$80.1 million from S$68.4 million, representing growth of approximately 17.1%.

Underlying EBITDA, which excludes certain pre-acquisition costs, increased approximately 22% to S$83.7 million.

The company reported an underlying EBITDA margin of approximately 45%, broadly consistent with FY25.

Statutory net profit after tax rose to S$26.0 million, compared with S$6.9 million in FY25.

Underlying net profit after tax reached S$29.6 million.

The improvement reflects expanding operating scale, revenue growth and cost management, although underlying and statutory results should be distinguished when comparing profitability.

Tuas Limited FY26 Financial Performance

Source: Tuas Limited FY26 Results Presentation, released on 23 September 2026. Figures are reported in Singapore dollars.

Mobile Subscriber Growth Supports Revenue

Subscriber growth remained an important operational driver during FY26.

Active mobile services increased to approximately 1.458 million at the end of FY26, compared with 1.254 million at the end of FY25.

This represents an increase of approximately 204,000 services, or 16.3%.

The company reported gross mobile average revenue per user (ARPU) of S$9.42 for FY26.

Tuas attributed revenue growth to its expanding subscriber base and broader range of plans offering different service inclusions.

Nevertheless, subscriber growth moderated during the second half of FY26.

Active mobile services increased from approximately 1.412 million in the first half to 1.458 million at year-end.

This represented an increase of approximately 46,000 services over the six-month period.

Competition, customer acquisition costs and subscriber retention therefore remain relevant to the company's future growth.

Broadband Expansion Adds Another Growth Avenue

Tuas continued expanding its fibre broadband business during FY26.

Active broadband services increased to approximately 62,000 at the end of FY26, compared with 26,000 at the end of FY25.

This represents an increase of approximately 36,000 services, or 138.5%.

The expansion highlights increasing adoption of SIMBA's fixed broadband offerings.

The company continued enhancing its broadband infrastructure to support high-speed connectivity for households and businesses.

Its service developments included 10Gbps broadband capabilities and Wi-Fi 7 router packages.

Tuas also launched a 10Gbps business broadband package priced at S$139 per month, including GST.

Broadband expansion provides an additional source of growth alongside mobile services, although infrastructure investment and customer acquisition costs remain important considerations.

Network Investment and 5G Development

Tuas continued investing in network infrastructure during FY26 to improve service capacity and support subscriber growth.

Its mobile development programme included network densification and expansion of 5G coverage.

The company also progressed its transition towards a cloud-based business support system, intended to improve customer management and operational efficiency.

Network planning for 5G Standalone services remained ongoing, while mobile core upgrades had been completed.

These developments support the company's longer-term network strategy.

However, additional infrastructure investment creates capital expenditure requirements that must be balanced against operating cash generation and financial flexibility.

Successful execution will depend on service reliability, network performance and the company's ability to maintain competitive customer offerings.

The M1 Acquisition That Did Not Proceed

The proposed acquisition of M1 Limited represented a significant potential strategic development for Tuas.

Announced in August 2025, the transaction required regulatory approval from Singapore's Infocomm Media Development Authority (IMDA).

The proposed consolidation was subsequently affected by regulatory and cybersecurity considerations.

SIMBA was designated a Critical Information Infrastructure operator in September 2025.

In February 2026, Singapore authorities disclosed that the country's four telecommunications operators had been targeted by advanced persistent threat groups.

The regulator's review of the proposed consolidation subsequently incorporated broader cybersecurity considerations.

On 17 May 2026, IMDA indicated that its review had been suspended pending an investigation.

The acquisition agreement reached its long-stop date on 21 May 2026 without regulatory clearance.

Consequently, the transaction lapsed and did not proceed.

The outcome removed an anticipated route to greater market scale, leaving Tuas to continue pursuing growth through its existing operations.

Regulatory Investigation Remains an Important Uncertainty

The regulatory investigation remains a significant consideration for Tuas.

In its FY26 presentation, the company indicated that the investigation concerned intermittent use of certain spectrum that SIMBA had previously been authorised to use for specific purposes.

Tuas stated that SIMBA was cooperating with the regulator.

The company also emphasised its commitment to regulatory standards and licensing obligations.

However, the financial or operational implications of the investigation cannot be established until further information becomes available.

Potential consequences could influence regulatory compliance requirements, operating expenditure and management priorities.

Tuas indicated that it would await further announcements from IMDA before providing additional public comment.

The absence of a final regulatory outcome therefore remains an important source of uncertainty for investors.

Cash Position and Financial Flexibility

Tuas' financial position strengthened considerably during FY26, supported by capital raised in connection with the proposed M1 transaction.

The company reported approximately S$498.8 million in cash and term deposits, compared with approximately S$80.7 million in the preceding financial year.

The increase was principally associated with financing activities, including net share issuance proceeds of approximately S$359.8 million.

Operating cash flow also improved.

FY26 net cash generated from operating activities reached approximately S$91.3 million, compared with approximately S$81 million in FY25.

Meanwhile, cash capital expenditure was approximately S$39 million in FY26, compared with approximately S$55 million in FY25.

These developments provide financial flexibility to support network investment, cybersecurity expenditure and other business priorities.

However, the eventual deployment of available funds remains relevant to future shareholder returns.

The cash balance should not be interpreted as evidence of a confirmed future acquisition, capital return or dividend.

FY27 Capital Expenditure and Cybersecurity Costs

Management has outlined several priorities for FY27.

The company intends to pursue broader revenue growth by leveraging SIMBA's network infrastructure and customer proposition.

Product innovation and telecommunications service development will also remain areas of focus.

Tuas expects FY27 mobile and broadband capital expenditure of S$50 million to S$55 million.

In addition, the company anticipates incremental cybersecurity-related expenditure of approximately S$15 million to S$30 million during FY27, comprising capital and operating costs.

This additional expenditure is associated with meeting cybersecurity requirements.

The planned investment may support operational resilience and compliance, although it could also influence near-term cash flow and profitability.

Management has not provided a specific FY27 EBITDA forecast in its FY26 results presentation.

Competitive Position in Singapore

Singapore's telecommunications market remains competitive, with operators seeking to attract and retain customers through pricing, service quality and network coverage.

SIMBA's growth has been supported by its customer proposition and expansion of network capabilities.

Its approximately 45% underlying EBITDA margin indicates the company's ability to generate operating earnings from its expanding revenue base.

However, maintaining profitability requires continued control over operating expenses and infrastructure investment.

The failed M1 acquisition also means Tuas must pursue its strategy without the additional scale that the proposed transaction could have provided.

Network performance, broadband adoption and cybersecurity compliance will remain important factors shaping its competitive position.

Risks and What Investors Should Watch

The regulatory investigation represents a principal uncertainty because its outcome remains unresolved.

Potential changes to compliance requirements or operating restrictions could influence business performance.

Additional cybersecurity spending may increase costs, while telecommunications competition could create pressure on pricing and customer acquisition.

Network expansion also requires continued capital investment.

The company remains exposed to Singapore's operating and regulatory environment, creating geographical concentration.

Important developments to monitor include future IMDA announcements, subscriber growth, broadband adoption, cybersecurity expenditure and decisions concerning the company's substantial cash resources.

The Bottom Line

Tuas Limited's FY26 performance demonstrated continued growth in its telecommunications operations.

Revenue increased to S$187.6 million, underlying EBITDA reached S$83.7 million, and statutory NPAT rose to S$26.0 million.

Active mobile services expanded to approximately 1.458 million, while broadband services reached 62,000.

These improvements demonstrate operating momentum.

However, the failed M1 acquisition, unresolved regulatory investigation and additional cybersecurity requirements create uncertainties around the company's future development.

Tuas' financial resources provide flexibility, but regulatory clarity and effective capital allocation will remain important to its investment outlook.