ISOTeam (5WF) H1 2025 earnings summary

Executive summary

• Revenue rose 4.2% year-over-year to S$65.4M for 1HY2025, with profit growth outpacing revenue growth and strong A&A segment performance offsetting declines elsewhere.

• Gross profit margin improved to 15.1%, returning to pre-pandemic levels, with gross profit up 18.4% to S$9.9M.

• Net profit attributable to equity holders rose 36.5% year-over-year to S$1.9M; EBITDA (excluding impairments) increased 23.5% to S$5.3M.

• Strong order book visibility through FY2029, with S$188.7M in contracts as of February 2025.

• Approximately 80% of revenue derived from public sector projects, ensuring low payment risk.

Financial highlights

• Revenue: S$65.4M (+4.2% yoy); Gross profit: S$9.9M; EBITDA: S$5.3M (+23.5% yoy); NPAT: S$1.9M (+36.5% yoy).

• Basic EPS: 0.28¢ (1HY2024: 0.26¢); ROE: 4.3% (1HY2024: 3.7%).

• Net asset value per share: 6.43¢ (1HY2024: 5.41¢); Net assets: S$44.8M.

• Operating cash flow before working capital: S$5.5M; Net cash from operations: S$1.1M.

• Gearing ratio improved to 0.8x; interest coverage at 3.4x; quick ratio at 1.4x.

Outlook and guidance

• Targeting consistent revenue growth of at least 10% year-on-year and sustained profitability.

• Focus on core businesses, renewable solutions, and AI-driven applications; digitalisation to streamline costs.

• Construction demand in Singapore projected at S$47–53B in 2025, supported by government initiatives and new HDB supply.

• Minimum dividend payout of 30% of net profit for FY2025.

• Emphasis on selective tendering, cash conservation, and cost control amid rising costs.