CSE Global Q2 new orders rise 3.8% to S$211.3 million

[SINGAPORE] Systems integrator CSE Global has secured S$211.3 million worth of new orders for its second quarter ended June, a 3.8 per cent rise from S$203.7 million in Q2 2024.

This brought its ending order book for Q2 and H1 to S$573.8 million, 17.1 per cent down from S$692.3 million in the year-ago period, the group said on Wednesday (Aug 6).

New order wins for Q2 were led by the electrification business segment, which represented around 44.9 per cent of total order intake for the quarter. Its new order wins grew year on year by 5.5 per cent to S$94.8 million from S$89.9 million, due to higher demand from the data centre market.

This was followed by the communications business segment, which contributed around 34.3 per cent of total order intake for Q2. Its new orders grew 17.6 per cent to S$72.4 million from S$61.6 million. During the quarter, CSE Global secured a contract for engineering design, installation and maintenance works for advanced communications networks for a major data centre, that is due for execution from 2025 to 2028.

The automation business segment’s order intake, which made up 20.8 per cent of new orders for Q2, declined 15.6 per cent to S$44.1 million from S$52.2 million.

On a half-year basis, the group’s H1 new orders fell to S$366.7 million, 3.2 per cent down from S$378.7 million in H1 2024.

By segment, new orders for the electrification business fell 21 per cent for H1 to S$130.9 million from S$165.6 million, while that of the communications business rose 18.9 per cent to S$136.1 million from S$114.5 million.

The automation business’ order intake was largely unchanged, inching up 1.1 per cent to S$99.7 million from S$98.6 million.

Lim Boon Kheng, group managing director and chief executive officer of CSE Global, said: “To optimise working capital efficiency, we are focused on strategically building our order book in the data centre and infrastructure sectors, and will reduce emphasis on water and wastewater sectors in the US.”

On Tuesday, the group announced that it secured US$46 million worth of major contract variations in the US data centre market. These were from an extension to a current contract with its existing hyperscaler customer.

Lim said that the contract variations are expected to contribute positively to CSE Global’s financial performance for the financial years 2025 and 2026.

However, they are not expected to have a material impact on the group’s consolidated net tangible assets per share or earnings per share for the current financial year.

The counter ended Wednesday 0.8 per cent or S$0.005 higher at S$0.675, before the announcement.