ISOTeam lifts 1H FY2026 profit 70% to S$3.3m despite 19% revenue drop; order book at S$176m and gearing steady at 0.8x
Summary:
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Revenue fell 18.9% year on year to S$53.1m as R&R, A&A and C&P segment billings were pushed into 2H FY2026, but gross profit was maintained at about S$9.9m and gross margin improved 3.5 percentage points to 18.6% on lower cost of sales.
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Net profit attributable to shareholders jumped 70.0% to S$3.3m (EPS 0.48 cents vs 0.28 cents), driven by housing‑cost savings from converting one floor of ISOTeam’s HQ into a foreign‑worker dormitory, a 7.5% reduction in general and administrative expenses, and a 96.6% drop in other expenses after prior‑year share‑based payments.
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Revenue from R&R, A&A and C&P declined 35.9%, 29.3% and 14.4% respectively, but the Others segment grew 49.7% to S$13.1m on completed renewable solutions contracts, partially offsetting segment weakness.
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The order book stood at S$176.2m as at 11 February 2026, including S$26.5m of new contracts announced in January, supporting expectations of stronger revenue recognition in 2H FY2026 in line with the government’s steady S$47–53bn construction demand forecast.
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ISOTeam continues to prioritise cash conservation and cost control while investing S$17.5m raised in 1H FY2026 (via SDAX commercial paper and a share‑cum‑convertible bond placement) into AI‑driven drones and digitalisation to lift productivity; net gearing remains around 0.8x.