SMRT Trains profit nearly doubles to S$12.8 million as revenue rises 5.6%

SINGAPORE: SMRT Trains’ profit after tax nearly doubled to S$12.8 million (US$10 million) in the latest financial year, as revenue grew 5.6 per cent on higher ridership and fare income, the transport operator said on Wednesday (Aug 5).

Profit after tax rose from S$6.9 million a year earlier, while earnings before interest and tax climbed to S$16.2 million from S$4.9 million. Revenue increased by S$51.5 million.

The increase in earnings and revenue was “partially offset by higher repair and maintenance expenditure, as SMRT continued to invest in its rail assets and strengthen its engineering capabilities”, the company said in a release.

SMRT Trains’ profit margin rose to 1.3 per cent from 0.75 per cent, which the company attributed to disciplined cost management and energy contracts secured before recent geopolitical developments.

The previous year, its margin had been dented by S$10 million in one-off costs from the September 2024 East-West Line disruption.

Speaking to reporters, SMRT Corporation chairman Seah Moon Ming said total train maintenance cost stood at S$245 million and total energy cost at S$125 million.

He noted that SMRT’s train network achieved an average of about 2 million mean kilometres between failure (MKBF) for the first time earlier this year.

“That is double the 1 million MKBF benchmark associated with some of the best-performing metros in the world,” said Mr Seah.

MKBF is a measure of rail reliability that tracks the average distance a train travels before encountering a service delay of more than five minutes.

The Land Transport Authority (LTA) publishes MKBF figures for Singapore’s train lines monthly. It excludes the SMRT-operated Thomson-East Coast Line (TEL), which is still undergoing phased openings and has not fully stabilised.

That level of reliability “does not happen by chance”, Mr Seah said. “It is not the result of a single breakthrough or the effort of one exceptional individual. It comes from discipline, teamwork, and a commitment to keep improving, every single day,” he said.