Nordic Group (SGX:MR7
) has reported a 9% y-o-y improvement in earnings to $19.0 million for FY2025, ended Dec 31, 2025.
Revenue saw a slight dip of 3% y-o-y to $158.4 million in FY2025, mainly due to lower revenue contribution from the project services (PS) segment as fewer projects were undertaken in 2HFY2025.
This was partially offset by steady growth in the maintenance services (MS) segment throughout the year and orderbook replenishment in 2HFY2025.
Despite the lower top line, gross profit increased by 10% y-o-y to $40.5 million, with gross profit margin up by 3.2 percentage points to 26.4%.
The higher gross profit margin was mainly attributed to the project services segment due to reversal of contingency costs not utilised and synergies derived from keeping the subcon jobs within the group.
As a result, operating profits grew 18% y-oy to $24.7 million and net profit grew 9% y-o-y to $19.0 million in FY2025, with net profit margin rising 1.3 percentage points to 12%.
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Cash flow from operating activities surged 53% y-o-y to $33.7 million and the group now in a net cash position of $4.1 million, following debt repayments in FY2025.
Nordic Group’s board is recommending a final dividend of 1.0745 cents per share. Together with the interim dividend of 0.8276 cents per share, which was already paid, total dividend was at 1.9021 cents per share. This equates to a dividend payout ratio of 40%.
As of Dec 31, 2025, Nordic Group holds an orderbook amounting to $201.9 million, comprising $66.0 million from project services and $135.9 million from maintenance services. Fulfilment of these orders are expected to be spread across the next 36 months.
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In terms of outlook, Nordic Group remains optimistic on its long-term prospects and is positioning itself to capture industry tailwinds across its key addressable sectors.
Shares in Nordic closed 1.5 cents higher, or up 3.13% to 49.5 cents on Feb 27.
