Nordic Group (MR7) H2 2025 earnings summary

Executive summary

• FY2025 brought a strategic reorganisation into Engineering Solutions and Engineering Services; reporting remained split between Project Services and Maintenance Services.

• Profitability strengthened despite a 3% YoY revenue decline; operating cash flow improved and the balance sheet returned to net cash.

Financial highlights

• Revenue fell 3% YoY to S$153.3m; gross profit rose 10% to S$40.5m and gross margin increased 3.2 ppts to 26.4%.

• Operating profit increased 18% to S$24.7m; net profit rose 9% to S$19.0m and basic and diluted EPS was 4.8 cents versus 4.4 cents.

• EBITDA was S$28.7m versus S$28.6m; profit before tax was S$22.5m versus S$20.2m.

• Net cash from operating activities was S$30.2m versus S$18.3m; cash and cash equivalents were S$41.8m at year-end.

• Other income included a S$155k reversal of trade receivables impairment; FX losses were S$1.3m, versus FX gains of S$1.9m in FY2024.

Outlook and guidance

• Outstanding orders of S$201.9m, including S$135.9m of Maintenance Services, support revenue visibility; 67% of the order book was maintenance contracts, up 9 ppts YoY.

• Highly customised project solutions can lead to follow-on maintenance contracts; continued maintenance growth is expected to reinforce recurring revenue and earnings resilience.

• No specific financial forecast was stated; disciplined capital allocation and pursuit of growth opportunities aligned with core engineering capabilities remain priorities.