Listed companies on the Singapore Exchange spent a combined S$2.09 billion repurchasing their own shares during the first eight months of 2026 (8M26).

This marks a substantial 33% increase compared to the S$1.57 billion bought back during the same period last year, and a remarkable 144% jump from the S$855 million recorded in 8M24.

Three Temasek-backed heavyweights fueled the overwhelming majority of this activity: Singapore Telecommunications (SGX: Z74), Keppel Ltd (SGX: BN4), and ST Engineering Ltd (SGX: S63).

Collectively, these companies invested S$1.34 billion in buybacks during the period, representing approximately 64% of all share repurchases executed on the local bourse.

As of 31 March 2026, Temasek Holdings holds a 52% stake in Singtel, a 51% interest in ST Engineering, and a 21% share of Keppel.

Here's a deeper dive into the forces behind these buyback programs and whether the underlying businesses possess the strength to maintain the momentum.

Singtel's Path to a Nearly Billion-Dollar Buyback

Singtel alone contributed S$948.6 million to the total, accounting for nearly 45% of all on-market buybacks on the SGX during 8M26.

The telecommunications giant is executing these repurchases under its Value Realisation Share Buyback (VRSB) programme, which is designed to return up to S$2 billion to shareholders over a three-year horizon.

During the annual general meeting on 29 July 2026, management reaffirmed its dedication to this initiative.

Once Singtel finalises the programme and cancels the repurchased shares, the group anticipates a permanent 3% enhancement to earnings per share (EPS), which could pave the way for a higher dividend per share (DPS) trajectory.

Recent financial performance substantiates this strategic move.

In the first quarter of its fiscal year ending 31 March 2027 (1QFY2027), revenue climbed nearly 5% year on year (YoY) to S$3.6 billion, while underlying net profit surged 21% to S$831 million.

Operating profit also advanced 10% to S$462 million, outpacing management's full-year guidance of low-to-mid single-digit growth.

Performance across its business units remained largely resilient.

NCS experienced a 29% YoY increase in operating profit to S$102 million, driven by improved delivery margins.

Optus saw a 14% gain to A$152 million, underpinned by stronger mobile pricing.

Digital InfraCo lifted operating profit by 10% to S$26 million as DC Tuas ramped up operations.

Meanwhile, Singtel Singapore's operating profit dipped 2% to S$230 million amid intensifying price competition.

Regional associates contributed S$543 million, up 16% YoY, with Airtel and AIS delivering the bulk of that growth.

For FY2026, Singtel raised its total dividend to S$0.185, up from S$0.170 in the prior year.

Importantly for investors, this buyback programme operates alongside a growing dividend, rather than serving as a replacement.

ST Engineering's Cash Engine: Can It Keep Buybacks Rolling?

ST Engineering allocated S$91.5 million toward buybacks in 8M26.

While this figure is more modest than Singtel's, it rests on a solid foundation of robust cash generation.

Free cash flow remains the cornerstone of sustainable dividends, and for 1H2026, ST Engineering delivered S$591.6 million in free cash flow, up from S$484.6 million a year earlier.

That comfortably covered its share repurchases while leaving ample room for increased shareholder payouts.

Total dividends for the first half reached S$0.09 (up from S$0.08 a year ago), with management earmarking a further S$0.05 for 3Q2026.

Revenue expanded 11.1% YoY to S$6.6 billion, propelling net profit up 27.1% to S$512.1 million as earnings growth outpaced revenue across all three operating segments.

Commercial Aerospace revenue grew 15% YoY, and Urban Solutions & Satcom matched that pace.

Defence & Public Security added 7%.

Net finance costs also declined 14.9% YoY.

The group's order book reached a record S$35.7 billion, with management expecting to convert roughly S$5.7 billion of that backlog into revenue over the remainder of 2026.

This clear revenue visibility offers strong support for both future dividends and ongoing buyback activity.

How Keppel Finances a S$301 Million Buyback Despite Mixed Results

Keppel invested S$301.1 million in buybacks during 8M26, ranking second among the three blue chips.

At first glance, headline numbers appeared weak, with net profit declining 59.0% YoY to S$154.7 million in 1H2026.

However, that drop was primarily attributed to a S$375 million non-core portfolio loss tied to legacy rig impairments and the terminated M1 Telco sale.

Excluding that portfolio impact, net profit rose 25% to S$530 million.

Recurring income grew 13% YoY to S$467 million.

Revenue climbed 24.6% to S$3.8 billion, with infrastructure revenue rising 27% as the Keppel Sakra Cogen Plant commenced commercial operations.

The ADG acquisition and Bifrost cable commercialisation further boosted Connectivity revenue.

Asset management progress also remained on schedule.

Funds under management reached S$106 billion as of 30 July 2026, surpassing Keppel's end-2026 target ahead of time.

The group generated S$570 million in free cash flow, supported by S$1.1 billion in divestment proceeds and dividends received.

Year to date, Keppel has monetised roughly S$1.7 billion in assets, keeping it aligned with its full-year target of S$2 billion to S$3 billion.

Reflecting confidence in its cash position, Keppel declared an interim dividend of S$0.150, unchanged from a year ago.

The Subtle Strength of Share Buybacks

Dividends place cash directly into your bank account, but share buybacks operate behind the scenes.

By shrinking the overall share count, future earnings get distributed among fewer shares, which lifts EPS and sets the stage for potentially higher dividends in the future.

Singtel's VRSB programme clearly demonstrates this concept, as its planned buybacks aim for a permanent 3% EPS boost.

Ultimately, each company's free cash flow and operational execution will determine whether this combined engine of dividends and buybacks can sustain its current momentum.