• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Can Tuas (ASX:TUA) Shares Shrug Off Rising Regulatory Costs?

    Simply Wall St·09/23/2026 09:27:43
    Listen to the news

    Tuas shares closed at A$1.785, capping a rough stretch that left the stock down about 21% over three months. The irony is hard to miss. The latest full year showed telecom scale starting to kick in, with revenue at about SGD 187.6m and underlying net profit after tax at SGD 29.6m.

    In the short term, traders see a stock that has cooled. In the longer term, this is a telecom operator reporting an earnings before interest, tax, depreciation and amortisation margin of roughly 45% and holding SGD 488.8m of cash. That is where the real debate begins.

    Love Tuas' high EBITDA margin and large cash position but uneasy about the recent share pullback? Compare that profile against our list of solid balance sheet and fundamentals stocks (12 results).

    FY 2026 Earnings Summary

    • Revenue (FY 2026): SGD 187.6m vs. SGD 151.3m in FY 2025 (up roughly 24%)
    • Net Income, underlying NPAT (FY 2026): SGD 29.6m vs. SGD 6.9m in FY 2025 (very large year on year increase, more than 4x)
    • Basic EPS (FY 2026): SGD 0.0478 vs. SGD 0.0148 in FY 2025 (up more than 3x)
    • EBITDA Margin (FY 2026): ~45% vs. ~45% in FY 2025 (margin roughly stable while earnings expanded)

    Prefer clean charts instead of a dense wall of telecom metrics and cash figures? Get a full visual read on Tuas with a focus on its valuation inside the company report for Tuas.

    ASX:TUA Trailing 12-Month Revenue & Expenses Breakdown as at Sep 2026
    ASX:TUA Trailing 12-Month Revenue & Expenses Breakdown as at Sep 2026

    Tuas earnings support a constructive growth story

    Tuas keeps feeding the challenger narrative. Revenue reached SGD 187.6m with underlying EBITDA at SGD 83.7m and margin around 45%. Underlying NPAT moved to SGD 29.6m on the same margin profile. That combination of rising scale, steady profitability and SGD 488.8m of cash gives real weight to the idea of a focused operator building share in a mature market. Mobile subscribers grew to about 1.4m and broadband services to roughly 62k, which shows the broader connectivity offer is gaining traction rather than stalling.

    Regulation, capex and share pullback keep bears engaged

    Shareholders have watched Tuas fall roughly 21% over three months while regulatory and cybersecurity questions built up. The lapsed M1 deal, IMDA scrutiny and guided FY27 spending of SGD 50m to SGD 55m plus SGD 15m to SGD 30m on cybersecurity all point to higher demands on cash and management focus. Competitive pressure remains intense, with plan replication and scam related SIM terminations biting. A large cash pile offsets some worry, but the direction of regulatory risk and required investment gives the cautious narrative real backing.

    With Tuas carrying a large cash balance while fresh regulatory demands and higher capex commitments line up, it is worth pressure testing that cushion. Check the full liquidity and balance sheet breakdown in our financial health analysis of Tuas stock.

    Own Your Next Investing Move

    If the mix of a sharp Tuas share pullback and strong reported EBITDA margin has you interested but cautious on timing, register for free with Simply Wall St and add it to your Watchlist to track price against fair value and watch how the story evolves. When you decide to build or adjust a position, use the Portfolio Command Center to cut through noise and focus on the updates that actually affect your thesis. For a longer view, tap into crowd insights through the Community and see how other investors are thinking about similar risks and opportunities. By surfacing hidden catalysts and potential pressure points early, Simply Wall St helps you stay ahead of the market instead of reacting to it.

    Seeking Fresh Alternatives Beyond Tuas

    Fresh ideas move first. Stalled watchlists miss the breakout, let momentum fly past and get caught reacting to drops. Scan under the radar for now and act early.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.