Tuas Limited (ASX:TUA) operates telecommunications services in Singapore through SIMBA Telecom, with mobile services forming the majority of group Revenue and fibre broadband becoming a larger contributor. FY26 delivered increases in revenue, underlying EBITDA and profit, but the company enters FY27 with an unresolved regulatory investigation and without the proposed M1 Acquisition that had previously formed part of its expansion plans.

FY26 Revenue Rises 24%

Tuas reported FY26 revenue of S$187.6 million, up 24% from S$151.3 million in FY25. Underlying EBITDA increased 22% to S$83.8 million, while the underlying EBITDA Margin remained around 45%. Statutory EBITDA was S$80.1 million after acquisition-related expenditure associated with the proposed M1 transaction.

Underlying NPAT increased to S$29.6 million from S$6.9 million in FY25. Statutory NPAT was S$26.0 million. The difference between statutory and underlying results mainly reflects costs relating to the M1 acquisition process.

Mobile Remains the Main Revenue Source

Mobile revenue increased to S$167.5 million from S$144.6 million. Active mobile services reached 1.458 million at 31 July 2026, compared with 1.254 million a year earlier, representing an increase of about 16%.

Gross mobile ARPU was S$9.42 for FY26. Tuas continued investing in network capacity and coverage during the year, including upgrades across more than 470 sites. Network planning for the transition to 5G standalone services also continued.

Broadband Becomes a Larger Contributor

SIMBA’s fibre broadband Business ended FY26 with 62,000 active services, compared with 26,000 at the end of FY25. Broadband revenue totalled approximately S$19.7 million, including recurring service revenue and equipment and installation revenue.

The company continued developing its 10Gbps fibre offering for residential and business customers. Broadband remains smaller than mobile but gives Tuas an additional source of recurring telecommunications revenue as the subscriber base expands.

Cash Position Increases Following Equity Raising

Cash and term deposits reached approximately S$498.8 million at the end of FY26, compared with S$80.7 million a year earlier. Net proceeds from the issue of Share Capital were S$359.8 million during the period.

Operating cash flow was S$91.3 million, while Investment in plant, equipment and intangible assets totalled approximately S$39.3 million. The larger cash balance gives Tuas flexibility to finance network investment and regulatory requirements while the Board assesses future capital allocation.

M1 Acquisition Did Not Proceed

Tuas announced the proposed acquisition of M1 in August 2025, with the transaction requiring regulatory approval in Singapore. During the review process, Singapore’s telecommunications regulator suspended its assessment pending an investigation involving SIMBA’s use of spectrum.

The sale and purchase agreement reached its long-stop date on 21 May 2026 without regulatory clearance. As a result, the transaction lapsed and did not proceed. Tuas therefore enters FY27 without the integration and funding requirements that would have accompanied the acquisition.

Regulatory Investigation Remains Outstanding

The regulator stated that its investigation concerns whether SIMBA may have used radio-frequency bands that had not been assigned for the relevant mobile-service purpose. Tuas has said SIMBA is cooperating with the investigation and will wait for formal announcements before making further public comment.

The final outcome had not been announced when Tuas released its FY26 results. Consequently, the financial or operational implications, if any, cannot yet be determined.

Cybersecurity Spending Adds to FY27 Costs

SIMBA was designated a critical information infrastructure operator during FY26, increasing the Cybersecurity requirements applying to its network.

Tuas expects incremental FY27 capital and operating expenditure of between S$15 million and S$30 million to meet these requirements. This expenditure will sit alongside normal network investment and represents an additional cost that needs to be considered against future EBITDA growth.

FY27 Network Capex Set at S$50–55 Million

Management expects FY27 mobile and broadband Capital Expenditure of between S$50 million and S$55 million. The spending will support network infrastructure, mobile capacity, 5G development and broadband services.

Tuas has not provided a specific FY27 revenue or EBITDA target. Its stated priorities include broader revenue growth, further product launches and continued investment in telecommunications infrastructure.

ASX 200 Status Has Changed

Tuas was removed from the S&P/ASX 200 as part of the September 2026 quarterly rebalance, effective before trading on 21 September 2026. The company should therefore not be described as a current ASX 200 constituent in articles published after that date.

Key Risks and Areas to Watch

The main uncertainty is the outcome of the regulatory investigation in Singapore. Competitive pricing could also affect subscriber growth and ARPU, while the additional cybersecurity expenditure will increase FY27 costs.

Other indicators to monitor include mobile subscriber numbers, broadband subscriptions, network capex and the use of the S$498.8 million cash balance. Tuas’ FY27 performance will also show whether growth can continue without the previously proposed M1 acquisition.