Singapore-listed companies repurchased a combined S$2.09 billion of shares in the first eight months of 2026 (8M26), up significantly from S$1.57 billion in the same period a year earlier.
In our previous article, we profiled three Temasek-backed giants driving the bulk of that volume.
Here are three more to round out the top six.
Singapore Exchange (SGX: S68), Seatrium (SGX: 5E2), and SATS (SGX: S58) spent a combined S$116.7 million on share buybacks over the same eight-month stretch.
As of mid-2025 and early 2026, Temasek Holdings holds a 23.3% stake in SGX (via SEL Holdings), 36% in Seatrium, and approximately 40% in SATS.
While all three share a prominent major shareholder, the financial backing behind their respective buyback programmes varies widely.
Can SGX buy back shares and raise dividends at the same time?
SGX repurchased 2,063,000 shares for S$42.0 million in 8M26, and unlike many corporate peers, the exchange operator generates more than enough cash flow to fund both buybacks and higher dividends simultaneously.
For the fiscal year ending 30 June 2026 (FY2026), net revenue climbed 13.9% year on year (YoY) to S$1.5 billion.
Reported net profit grew 7.8% to S$698.4 million, though that headline figure was weighed down by a S$53.4 million goodwill impairment on Scientific Beta along with weaker investment gains.
Strip out those one-off factors, and adjusted net profit rose an impressive 24.6% to S$759.5 million.
Free cash flow reached S$788.8 million (up 2.0% YoY), comfortably absorbing an increased capital expenditure of S$94.2 million dedicated to technology modernisation.
Balance sheet strength remains intact, with the group holding S$1.8 billion in cash against S$628.2 million in debt.
Reflecting that cash generation, SGX raised its ordinary dividend to S$0.445 per share from S$0.375 a year ago.
Management also declared a one-off special dividend of S$0.125, bringing the total FY2026 payout to S$0.570 per share.
Looking ahead, management guided for 6% to 8% medium-term revenue growth and expects to fully repay its debt in FY2027.
It also committed to quarterly dividend increases of 0.25 cents through FY2028, making its share buybacks part of a broader, well-funded capital return strategy.
What is driving SATS’ buyback amid negative free cash flow?
Ground handler and in-flight caterer SATS repurchased 9,554,200 shares for S$35.0 million in 8M26, even as its cash flow lagged behind top-line recovery.
For the first quarter of fiscal 2027 ended 30 June 2026 (1QFY2027), revenue rose 11.3% YoY to S$1.68 billion, while net profit gained 6% to S$75.1 million.
Top-line expansion was led by Gateway Services, where revenue advanced 12.8% to S$1.3 billion as cargo volume processed grew 8.6% to 2.6 million tonnes – outpacing IATA industry benchmarks.
Flights handled increased 4.0%, with a 15.5% gain in the Americas helping offset a 5.1% dip in Asia-Pacific.
Food Solutions revenue added 5.4% to S$346.0 million on a 10.9% rise in gross meals prepared.
Despite the operational momentum, cash flow trailed behind. SATS recorded negative free cash flow of S$22.6 million for the quarter, primarily driven by working capital timing.
Total debt stood at S$4.2 billion, bringing gross debt-to-equity ratio to 1.41 times.
As is typical, SATS declared no quarterly dividend.
Management flagged elevated oil prices and Middle East tensions as key operational risks for the quarters ahead, even as the group continues to pursue global market share gains.
What happens after Seatrium completes its S$100 million programme?
Offshore and marine specialist Seatrium repurchased 17,780,000 shares for S$39.7 million in 8M26.
Cumulative repurchases under its S$100 million Share Buyback Programme reached roughly S$97.7 million, with subsequent purchases in early September taking the total to S$99.7 million – effectively bringing the mandate to completion.
Profits improved notably in the first half.
Revenue for 1H2026 grew 4.7% YoY to S$5.6 billion, while net profit attributable to owners more than doubled to S$372.9 million.
A major driver of that surge was a S$171.7 million gain from non-core asset disposals.
On an operational level, gross profit advanced 22.1% to S$482.3 million, aided by better project recognition and overhead cost savings.
Free cash flow remained in negative territory at negative S$11.6 million, though this represents an improvement from negative S$31.9 million a year ago.
The group held S$1.7 billion in cash against S$2.4 billion in total debt, declaring no interim dividend.
Management expects full-year 2026 net profit to come in materially higher than FY2025, buoyed by the divestment gains.
However, with the current S$100 million buyback programme virtually finished, whether Seatrium authorises a new mandate will likely depend on its ability to turn operating cash flow consistently positive.
Get Smart: The Simple Test for Share Buybacks
A share buyback reduces the overall share count, dividing future earnings across fewer shares to lift earnings per share (EPS).
For dividend-paying companies, that same mathematical dynamic can help support higher dividends per share down the line.
However, buybacks draw from the exact same pool of cash as dividends: free cash flow.
While SGX easily funded its share repurchases out of surplus cash flow, the durability of buybacks for companies like Seatrium and SATS ultimately hinges on whether underlying earnings growth converts into positive cash generation.
The simplest test for any share buyback is whether the business produces enough organic cash flow to fund the repurchases without stretching its balance sheet.
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Disclosure: The Smart Investor owns shares of SGX.
