Highlights

  • Tuas Limited (ASX:TUA) reported FY26 revenue of S$187.6 million, up approximately 24% from S$151.3 million in FY25, supported by mobile and broadband subscriber growth.
  • The proposed M1 acquisition was terminated in May 2026 after regulatory approval conditions remained outstanding, leaving Tuas focused on its existing Singapore telecommunications operations.
  • Tuas reported underlying EBITDA of S$83.7 million and approximately S$498.8 million in cash and term deposits, although regulatory uncertainty and additional cybersecurity expenditure remain key considerations.

Tuas Limited (ASX:TUA) is navigating a significant change in its investment narrative following the collapse of its proposed acquisition of Singapore telecommunications operator M1.

The transaction, which had represented a potential opportunity to expand Tuas' scale and competitive position, did not proceed after the necessary regulatory clearance remained outstanding.

Consequently, investor attention has shifted towards the company's existing telecommunications operations, financial performance and future capital allocation decisions.

Tuas reported its FY26 results on 23 September 2026, demonstrating continued growth in revenue, profitability and subscriber numbers. However, an unresolved regulatory investigation and anticipated cybersecurity expenditure remain important uncertainties.

What Tuas Does

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

The company provides mobile telecommunications services and fibre broadband products, competing with established operators through its network infrastructure, pricing and service offerings.

Mobile services account for the majority of its business, while broadband represents an expanding source of revenue.

Although Tuas shares trade on the Australian Securities Exchange, the company's operating activities are concentrated in Singapore, and its financial results are reported in Singapore dollars.

Its financial year ends on 31 July, with FY26 covering the period from 1 August 2025 to 31 July 2026.

What the FY26 Result Showed

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

The increase reflected the expansion of its subscriber base and broader telecommunications service offerings.

Statutory EBITDA rose to S$80.1 million, compared with S$68.4 million in FY25.

Underlying EBITDA reached S$83.7 million, increasing approximately 22% year-on-year, while the underlying EBITDA margin remained around 45%.

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

Underlying net profit after tax reached S$29.6 million.

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

Meanwhile, active broadband services expanded from approximately 26,000 to 62,000.

Gross mobile average revenue per user (ARPU) stood at S$9.42 in FY26.

The financial results indicate continued operational progress, although maintaining customer growth and revenue per subscriber remains important in Singapore's competitive telecommunications market.

How the M1 Deal Unravelled

Tuas announced its proposed acquisition of M1 in August 2025, with the transaction intended to expand its telecommunications operations in Singapore.

The proposed acquisition required regulatory approval from Singapore's Infocomm Media Development Authority (IMDA).

However, the regulatory review became complicated by cybersecurity and licensing considerations.

SIMBA was designated a Critical Information Infrastructure operator in September 2025, increasing the importance of its cybersecurity and regulatory responsibilities.

In May 2026, IMDA suspended its review of the proposed consolidation pending an investigation.

The sale and purchase agreement subsequently reached its extended long-stop date of 21 May 2026 without several conditions precedent being satisfied.

On 22 May 2026, Tuas formally announced the agreement's termination.

Under the agreement's terms, the parties were released from their respective obligations, subject to certain surviving provisions.

SIMBA continued operating in the Singapore telecommunications market following the termination.

The outcome removed a potential consolidation opportunity and shifted attention towards Tuas' standalone growth strategy.

Regulatory Investigation Remains Unresolved

Alongside the M1 transaction's termination, Tuas disclosed that SIMBA was cooperating with an investigation undertaken by IMDA.

The investigation concerns potential breaches of Singapore's Telecommunications Act and conditions attached to SIMBA's Facilities-Based Operator Licence.

In its FY26 results presentation, Tuas indicated that the matter involved intermittent use of spectrum that SIMBA had previously been authorised to use for specific purposes.

The company has stated that maintaining regulatory compliance remains an operational priority.

However, the investigation's final outcome and any associated financial consequences have not been established.

Potential regulatory requirements could influence future operating costs, infrastructure expenditure or business activities.

Tuas has indicated that it will provide further information following relevant regulatory developments.

Until the investigation is resolved, regulatory uncertainty remains an important consideration for shareholders.

What Happened to the Balance Sheet?

Tuas reported approximately S$498.8 million in cash and term deposits in its FY26 presentation, compared with approximately S$80.7 million in the previous financial year.

The substantial increase was principally associated with financing activities undertaken in connection with its proposed acquisition strategy.

Net proceeds from share capital issuance were approximately S$359.8 million.

The company also generated approximately S$91.3 million in operating cash flow during FY26, compared with around S$81 million in FY25.

Cash capital expenditure was approximately S$39 million, compared with approximately S$55 million in FY25.

The enlarged cash position provides financial flexibility for future network investment, cybersecurity requirements and potential strategic initiatives.

However, the company has not established a definitive allocation for all available capital.

Possible uses of cash should therefore be treated as strategic alternatives rather than confirmed corporate actions.

The balance sheet remains an important part of the investment assessment following the termination of the M1 acquisition.

Competitive Position

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

SIMBA has expanded its subscriber base through its mobile and broadband products.

Its active mobile services reached approximately 1.458 million at the end of FY26, while broadband services increased to 62,000.

The company continued investing in network densification, 5G coverage and customer service infrastructure.

Mobile core upgrades have been completed, while planning for a transition towards 5G Standalone services remains ongoing.

Tuas has also advanced its fibre broadband offerings, including 10Gbps connectivity and Wi-Fi 7 router packages.

However, without M1, the company must continue strengthening its market position through organic growth and infrastructure development.

Subscriber retention, pricing discipline and operational efficiency remain important factors for sustained profitability.

FY27 Outlook and Spending Requirements

Tuas has outlined plans to pursue broader revenue growth during FY27 by leveraging SIMBA's existing network infrastructure and service proposition.

The company intends to maintain its focus on product innovation and telecommunications service development.

Management has guided for FY27 mobile and broadband capital expenditure of S$50 million to S$55 million.

Additionally, Tuas expects incremental cybersecurity-related capital and operating expenditure totalling approximately S$15 million to S$30 million during FY27.

These expenses are associated with meeting cybersecurity requirements.

While continued infrastructure investment may support operational resilience and subscriber growth, additional expenditure could influence cash generation and profitability.

The company has not provided a specific FY27 revenue or EBITDA forecast in its September 2026 results presentation.

Accordingly, the financial effects of planned expenditure will depend on implementation costs, operating performance and future customer growth.

Risks and What to Watch

The regulatory investigation remains one of the most significant uncertainties for Tuas.

Its outcome could influence compliance obligations and future operating requirements, although the extent of any consequences remains undetermined.

Additional cybersecurity expenditure may increase costs during FY27.

Competition in Singapore's mobile market could also affect subscriber acquisition, pricing and average revenue per user.

Meanwhile, network expansion requires continued investment, creating potential pressure on cash flow.

Investors may therefore monitor several developments:

  • Regulatory outcome: Further announcements concerning the IMDA investigation and any associated requirements.
  • Capital allocation: Decisions regarding the deployment of the company's substantial cash resources.
  • FY27 expenditure: Planned mobile and broadband capital expenditure of S$50 million to S$55 million, alongside S$15 million to S$30 million in incremental cybersecurity spending.
  • Subscriber growth: Changes in mobile and broadband subscriptions, customer retention and gross mobile ARPU.
  • Operating profitability: The company's ability to maintain margins while supporting network investment and compliance.

The Bottom Line

Tuas Limited has demonstrated continued operational growth, but its investment case has changed substantially following the termination of the M1 acquisition.

FY26 revenue increased to S$187.6 million, underlying EBITDA reached S$83.7 million, and statutory net profit rose to S$26.0 million.

The company also expanded its mobile and broadband subscriber bases while maintaining a substantial cash position.

However, the unresolved regulatory investigation and additional cybersecurity requirements introduce uncertainty regarding future expenditure and operating conditions.

For investors, Tuas' outlook now depends not only on subscriber growth but also on regulatory clarity, disciplined capital allocation and the sustainability of its standalone telecommunications business.