Nordic Group Limited: 3Q2025 & 9M2025 Business Update

Sustainable Growth Driven by Operational Excellence and Robust Orderbook

Nordic Group Limited has released its business update for the third quarter and nine months ended September 2025, revealing key financial and operational developments that shareholders and investors should closely monitor. The group continues to demonstrate sustainable growth, disciplined financial management, and strategic contract wins, all of which may have significant implications on its share value.

Key Financial Highlights

• Revenue Growth: Nordic achieved a 1% year-on-year revenue increase in 3Q2025 (S\$45.4 million vs. S\$44.8 million) and an 8% rise for 9M2025 (S\$130.3 million vs. S\$120.9 million), showing resilience in topline expansion.
• Net Profit Stability: Net profit for 3Q2025 came in at S\$4.4 million, up 7% from S\$4.1 million in 3Q2024. For 9M2025, net profit remained stable at S\$12.7 million, unchanged from the prior year.
• Earnings Per Share (EPS): EPS held steady at 1 cent for 3Q2025 and 3 cents for 9M2025.
• Margins: Gross profit margin dipped slightly to 20.6% (3Q2025) and 21.9% (9M2025). EBITDA margin declined to 15.1% (3Q2025) and 15.2% (9M2025), reflecting cost pressures.
• Net Asset Value (NAV) Per Share: An increase to 32 cents per share from 31 cents, indicating ongoing value creation for shareholders.
• Orderbook Strength: The orderbook surged to S\$209.2 million, supported by higher maintenance contracts, which provide stable recurring income and enhanced revenue visibility.

Balance Sheet and Capital Management

• Net Gearing Ratio: Nordic’s net gearing ratio dropped significantly to 3%, evidencing a robust balance sheet and prudent debt management. The group has maintained net cash positions in various fiscal years, and its financial flexibility remains a key strength.
• Share Buybacks: The company has been actively conducting share buybacks, accumulating 1,733,100 shares at a volume-weighted average price of S\$0.3318 since 2022. The buyback mandate was renewed at the AGM on 29 April 2025, indicating management’s confidence in the company’s prospects and its commitment to enhancing shareholder value.
• Insider Share Purchases: Directors and executive officers collectively hold 75.7% of the company’s shares as of 30 September 2025, up from 68.25% at IPO. This significant insider ownership signals strong alignment of interests between management and shareholders, which can be seen as a bullish indicator.

Operational Performance and Contract Wins

• Major Contract Wins:
  • December 2025: Secured new contracts worth S\$70.3 million across system integration, precision engineering, scaffolding, insulation, petrochemical, cleanroom, air & water, and structural engineering services. Notably, manufacturing contracts include a series of 25 vessels and 1 FPSO, which could drive future growth and margin improvement.
  • July 2025: Additional contracts valued at S\$48.7 million in similar segments, demonstrating sustained demand and market diversification.
• Orderbook Composition: The orderbook’s expansion is mainly driven by maintenance contracts, securing a steady stream of recurring revenue and bolstering long-term visibility.
• Revenue Contributions: Key service segments for 9M2025 include Cleanroom, Air & Water Services (22%), Structural Engineering & Construction Services (19%), System Integration/MRO & Trading (14%), Precision Engineering (10%), and others, reflecting a diversified business model.
• Industry Diversification: Revenue by industry for 9M2025 is led by Onshore/Downstream (19%), Marine/Upstream (9%), Electronics Manufacturing System (1%), and others. This spread mitigates sector-specific risks and positions Nordic to capitalize on different market cycles.

Potential Price Sensitive Factors for Shareholders

• Record-high Orderbook: The substantial jump in orderbook to S\$209.2 million, particularly from maintenance contracts, could have a material impact on future earnings, cash flows, and share price.
• Ongoing Share Buybacks: Continued buyback activities at above-market prices may provide share price support and signal undervaluation.
• High Insider Ownership: Majority ownership by directors and senior management reflects strong confidence in the company’s prospects – a positive for investor sentiment.
• Contract Wins: Large, multi-segment contract wins, including those for new vessels and FPSOs, could drive revenue and margin growth, with potential to positively surprise the market.
• Balance Sheet Strength: The company’s very low net gearing ratio and net cash positions allow for greater financial resilience and flexibility, supporting potential future M&A or dividend actions.

Conclusion

Nordic Group Limited’s latest business update underscores its sustainable growth trajectory, operational strength, and strategic positioning. The combination of record orderbook, high insider ownership, active share buybacks, and major contract wins across diversified industries could be highly price-sensitive and relevant for shareholders and potential investors. These factors suggest continued confidence in the company’s future performance and provide a platform for further value creation.

Disclaimer

This article is for informational purposes only and is not intended as investment advice. Investors should conduct their own due diligence and consult their financial advisers before making any investment decisions. The analysis is based on publicly available information from Nordic Group Limited’s business update as of December 2025, and actual results may differ from projections. The author does not assume any responsibility for investment decisions made based on this article.

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