Profit Boom at UOS Raises Questions on Dividend Sustainability
United Overseas Australia Ltd reported a robust 61.7% increase in net profit for the year ended 31 December 2025, alongside a 48% rise in revenue. The company declared a final unfranked dividend of 2.00 cents per share, maintaining its payout despite strong earnings growth.
- Net profit after tax up 61.7% to $148.1 million
- Revenue increased 48.1% to $269.7 million
- Earnings per share rose to 8.78 cents
- Final unfranked dividend maintained at 2.00 cents per share
- Strong cash flow with net operating inflow of $153.1 million
Robust Financial Performance
United Overseas Australia Ltd (UOS) has delivered a standout financial year for 2025, reporting a net profit after tax of $148.1 million, a significant 61.7% increase compared to the previous year. This profit surge was supported by a 48.1% rise in gross revenue to $269.7 million, reflecting strong operational momentum across its property development and investment segments.
The company’s earnings per share climbed to 8.78 cents, up from 5.58 cents in 2024, underscoring improved profitability and efficient capital management. Despite this robust growth, the Board has opted to maintain the final dividend at 2.00 cents per share, consistent with the prior year, signalling a balanced approach between rewarding shareholders and retaining capital for future growth.
Operational Highlights and Geographic Footprint
UOS’s operations span Australia, Vietnam, and Malaysia, with each region contributing to the positive results. In Australia, the Leederville Offices maintained an 85% occupancy rate amid a competitive leasing environment. Vietnam’s UOA Vietnam Tower achieved an impressive 97% occupancy, with ongoing construction of new towers in Districts 1 and 7 expected to complete by 2027 and 2028 respectively, signalling continued expansion in this key market.
Malaysia remains a core focus through UOA Development Bhd, where property development revenue nearly doubled, contributing $166.8 million to net profit. The group’s property rental and real estate investment trust segments also provided steady income streams, with gross rentals of $44 million and trust distributions of $8.5 million.
Financial Position and Cash Flow Strength
UOS’s balance sheet remains solid, with net tangible assets per share rising to $1.24 and a slight improvement in the net debt to equity ratio to 12.5%. The company generated a strong net operating cash inflow of $153.1 million, nearly tripling the previous year’s $54.8 million, reflecting effective working capital management and operational cash generation.
The group’s strategic acquisitions during the year, including a 75% stake in Midtown Sanctuary Sdn Bhd and full ownership of Vias Hong Ngoc Bao Joint Stock Company in Vietnam, position it well for future growth. Meanwhile, divestments of non-core healthcare interests streamlined the portfolio.
Outlook and Governance
Directors remain confident in the group’s prospects, buoyed by improving economic conditions in its key markets and a return to pre-pandemic levels in the hospitality segment. The company will continue to monitor market demand closely and pursue development opportunities accordingly.
UOS will hold its Annual General Meeting virtually on 28 May 2026, reflecting its commitment to accessibility for its geographically diverse shareholder base. The dividend reinvestment plan will operate with a 5% discount, offering shareholders an attractive option to increase their holdings.
Bottom Line?
With strong profit growth and a stable dividend, UOS is poised to capitalise on expanding markets while balancing shareholder returns and reinvestment.
Questions in the middle?
- How will ongoing construction projects in Vietnam impact future earnings and cash flow?
- What is the company’s strategy for balancing dividend payouts with growth capital needs?
- How might market conditions in Malaysia and Australia influence UOS’s development pipeline?
