Principal Activities
CK Hutchison has five core businesses - ports and related services, retail, infrastructure, telecommunications and finance & investments and Others.
Latest Results
The Group's profit attributable to shareholders for the year ended 31-12-2025 amounted to HKD 11.84 billion, a decrease of 30.7% compared with previous corresponding period. Basic earnings per share was HKD 3.0916. A dividend of HKD 1.602 per share was declared. Turnover amounted to HKD 280.04 billion, a decrease of 0.5% over the same period last year, gross profit margin down 2.8% to 59.4%. (Announcement Date: 19 Mar 2026)
Business Review - For the year ended December 31, 2025
Ports and Related Services
This division reported revenue of HK$48,895 million, an increase of 8% compared to 2024, mainly driven by 3% throughput growth mainly from Yantian and Shanghai Ports, as well as key terminals in Asia and Middle East, along with a 17% higher storage income compared to last year, primarily contributed by Mexico and European ports, partly offset by adverse performance of a shipping line associated company due to drop in market freight rate. EBITDA(2) of HK$17,439 million and EBIT(2) of HK$12,850 million, both increased by 8%, delivered through a combination of robust revenue growth and disciplined cost management.Looking ahead to 2026, global trade growth is expected to slow down amid geopolitical risks and China-U.S. trade tensions. The conflicts in the Middle East region, if prolonged, will also shift trade routes away from the region. However, with the division’s geographically diversified portfolio, the impact is expected to be mostly mitigated as other ports in the division may benefit from the diversion.The Group will also continue to work to resolve its legal disputes with the Panamanian State and others relating to the Group’s container terminal operations in Panama in a way that is fair and protects the interests of shareholders of the Group.
Retail
The division’s total revenue of HK$209,267 million increased by 10% in reported currency against last year, while EBITDA(3) and EBIT(3) of HK$18,238 million and HK$14,553 million increased by 11% and 12% respectively. In local currencies, total revenue increased by 6%, while EBITDA and EBIT both increased by 5%. This division recorded positive growth against last year mainly attributable to the growth in Health and Beauty businesses in Europe and Asia. The favourable performance was partly offset by challenging business environment in the Health and Beauty China segment.Looking ahead, the division’s European and Asian operations are well-positioned to continue the growth momentum despite economic headwinds. Health and Beauty China is aiming to mitigate challenging market conditions through assortment enhancements, particularly focusing on own brand products, optimising the existing store network quality and enhancing online capabilities to drive online plus offline traffic. This division will focus on expanding and nurturing its 183 million loyalty members through optimisation of customer journey and disciplined short payback principle for investments in new stores and refurbishments as well as in advanced technology.
Infrastructure
The Infrastructure division comprises a 75.67% interest in CK Infrastructure Holdings Limited (“CKI”), a subsidiary listed in Hong Kong as well as interests in six co-owned infrastructure investments with CKI as of December 2025. The divestment of the division’s 70% interest in UK Rails was completed in January 2026, with interests in five co-owned infrastructure investments with CKI remaining in this division thereafter.
CKI
CKI announced net profit attributable to shareholders under Post-IFRS 16 basis of HK$8,265 million, 2% higher than last year, reflecting steady operating performance across major businesses.Looking into 2026, this division’s regulated businesses will continue to provide steady and recurring income and the non-regulated businesses will grow organically and actively expand their portfolios.Together with its strong financial position, this division is well placed to capitalise on investment opportunities as they arise.
CK Hutchison Group Telecom
On 31 May 2025, the merger of 3 UK and Vodafone UK was completed with the formation of the combined business, VodafoneThree, now a 49% associated company of the Group. CKHGT also received approximately£1,300 million net proceeds on completion of the merger.
Revenue of CKHGT was HK$101,311 million (11,387 million), 15% higher against last year in reported currency. EBITDA and EBIT included one-time non-cash loss on the UK merger and related impacts(4), excluding which, underlying EBITDA(5) of HK$27,817 million (3,128 million) was 15% higher against last year in reported currency, primarily due to treasury gains of approximately HK$700 million from bond buybacks and higher underlying EBITDA contribution from 3 Group Europe. Underlying EBIT(5) of HK$4,783 million (536 million) was 37% higher due to the higher EBITDA mentioned above, partly offset by higher depreciation of 3 Group Europe from the share of higher depreciation from an enlarged company following the UK merger completion.
Revenue of HK$93,839 million was 10% higher against last year in local currencies, primarily driven by growth in net customer service revenue from the higher customer base, higher MVNO and other wholesale revenue, as well as accretive contribution from the share of revenue of VodafoneThree.
3 Group Europe reported an overall 10% higher total margin in local currencies. Underlying EBITDA(6) of HK$25,877 million was 6% or HK$1,500 million higher against last year in local currencies, primarily driven by accretive EBITDA contribution from VodafoneThree, as well as margin growth of other operations. Depreciation and amortisation increased by 7% or HK$1,358 million primarily due to the share of higher depreciation of VodafoneThree following merger completion, which more than offset the accretive EBITDA contribution from the merged entity.Correspondingly, underlying EBIT(6) of HK$3,969 million was 4% or HK$142 million higher against last year in local currencies which was mainly arising from improvements in other operations of this division.
VodafoneThree is currently the largest mobile network operator in the United Kingdom with over 28 million customers. Spectrum and network sharing are ahead of plan to deliver seamless access of both networks to customers through activation of more than 8,000 radio sites and removal of 16,500 km2“not spot”area at the end of 2025 which already resulted in notable network improvements recognised by independent tests. The merged entity has also made significant progress in integration processes, including retail and property consolidation and organisation simplification of the combined business, and is on-track to deliver cost and capex synergy target of£700 million per annum by the fifth year after merger completion.
Excluding VodafoneThree, consolidated revenue, EBITDA and EBIT for all other operations in 3 Group Europe year on year were 1%, 2% and 13% higher in local currencies respectively. These operations will aim to deliver stable underlying performance through growing customer base, expanding beyond-the-core offerings, and implement cost efficiency initiatives to increase productivity and reduce costs over the next five years.
Finance & Investments and Others
This segment reported underlying EBITDA and EBIT improvement against last year, primarily due to higher contribution from Cenovus Energy, as well as the Group’s share of gains from disposal of non-core assets by TPG and HUTCHMED, partly offset by adverse performance of the Marionnaud businesses from intensified competition.
The Group’s 16.4% share of Cenovus Energy’s Post-IFRS 16 EBITDA, EBIT and net earnings were HK$9,851 million, HK$4,838 million and HK$3,757 million, an increase of HK$540 million, HK$347 million and HK$716 million compared to last year respectively, mainly reflecting upstream production volume increase and the recognition of a gain from downstream asset disposal, partly offset by decline in commodity prices. In November 2025, Cenovus Energy completed the acquisition of MEG Energy, adding oil sands production of approximately 110,000 barrels per day, as well as creating value through synergies achievable in the near term. Together with maintaining a competitive cost structure, optimising margins and focusing on financial discipline, the operation is well positioned for resiliency through the volatile commodity price cycles.
Indosat Ooredoo Hutchison, the Group’s telecommunications joint venture in Indonesia, reported Post-IFRS 16 EBITDA and net earnings increase of 1% and 12% compared to last year respectively.Despite the challenging business environment in the first half of the year, the operation delivered a notable turnaround in the second half, returning to positive growth driven by improved revenue across all business lines together with ongoing cost optimisation.
TPG Telecom, the Group’s listed associate in Australia, reported net earnings on a continuing operations basis of A$52 million compared to net loss of A$140 million last year, which included a A$250 million pre-tax one-off non-cash impairment charge. Excluding this impairment, the underlying improvement reflected a 2% service revenue growth and disciplined cost controls, which sets a strong foundation for achieving 2026 targets. The operation has also completed the sale of a non-core asset in July 2025 generating A$4.7 billion of net cash proceeds.
The Group’s liquidity and financial profile further strengthened with the receipt of approximately£1.3 billion net proceeds upon completion of the UK merger, as well as continued cash flow generation from controlled capital expenditure and disciplined working capital management.Consolidated cash and liquid investments at 31 December 2025 totalled HK$151,310 million and consolidated total bank and other debts(7) amounted to HK$265,099 million, resulting in consolidated net debt(7) of HK$113,789 million (31 December 2024–HK$129,614 million) and net debt to net total capital ratio(7) of 13.9%, a significant 2.3%-points improvement from the 16.2% reported for the year ended 31 December 2024.
Business Outlook - For the year ended December 31, 2025
Without doubt, the Group’s businesses will face new and perhaps unforeseen challenges in 2026.However, as usual, the Group will maintain its disciplined capital allocation, cash flow and liability management, as well as its strong financial profile to ensure it continues to deliver a stable performance. The Group will also of course continue to look for opportunities to enhance value for our shareholders through major transaction activity.
Source: CK Hutchison (00001) Annual Results Announcement |