ISOTeam Ltd. 1HY2026 Financial Results Analysis
ISOTeam Ltd., a leader in Singapore’s estate maintenance and building refurbishment sector, released its financial results for the half year ended 31 December 2025 (1HY2026). This report provides a comprehensive analysis of the company’s latest performance, key developments, and outlook, tailored for investors seeking actionable insights.
Key Financial Metrics and Performance Comparison
| Metric |
1HY2026
(Current) |
2HY2025
(Previous Half) |
1HY2025
(Same Period Last Year) |
YoY Change |
HoH Change |
| Revenue (S\$M) |
53.0 |
65.4 |
65.4 |
-18.9% |
-18.9% |
| Net Profit Attributable to Equity (S\$M) |
3.3 |
1.9 |
1.9 |
+70.0% |
+73.7% |
| Gross Profit Margin (%) |
18.6 |
15.1 |
15.1 |
+3.5 pts |
+3.5 pts |
| EBITDA (S\$M) |
5.6 |
5.3 |
5.3 |
+5.7% |
+5.7% |
| EPS (cents) |
0.48 |
0.28 |
0.28 |
+71.4% |
+71.4% |
| Return on Equity (%) |
5.7 |
4.3 |
4.3 |
+1.4 pts |
+1.4 pts |
| Net Asset Value (cents) |
7.27 |
6.43 |
6.43 |
+13.1% |
+13.1% |
| Dividend (cents per share) |
Not disclosed |
Not disclosed |
Not disclosed |
N/A |
N/A |
Profitability and Margin Analysis
ISOTeam’s revenue declined 18.9% year-on-year to S\$53.0 million, mainly due to the timing of project completions in key segments (Repairs & Redecoration, Addition & Alteration, and Coating & Painting). Despite this, the company delivered a 70% YoY surge in net profit (S\$3.3 million), as gross profit margin expanded to 18.6% (+3.5 percentage points). This margin improvement was attributed to cost savings from housing foreign workers at the newly converted HQ dormitory, which reduced operating costs and improved efficiency.
Segmental Revenue Breakdown
| Segment |
1HY2026 (S\$M) |
1HY2025 (S\$M) |
YoY Change |
| Repairs & Redecoration (R&R) |
12.1 |
18.8 |
-35.6% |
| Addition & Alteration (A&A) |
21.4 |
30.3 |
-29.4% |
| Coating & Painting (C&P) |
6.4 |
7.5 |
-14.7% |
| Others |
13.1 |
8.8 |
+48.9% |
Order Book and Fundraising Activity
- Order book stands at S\$176.2 million as of 31 December 2025, providing strong revenue visibility through the next two years. New projects worth S\$26.6 million were secured post-period, to be delivered by March 2029.
- ISOTeam completed significant fundraising during 1HY2026:
- Raised S\$7.0 million via placement of 86.2 million new shares at 8.1¢ each.
- Raised S\$3.0 million from convertible bonds at a conversion price of 9.1¢ per share.
- Conducted SDAX Series 002 and 003 issuances, raising up to S\$16.43 million combined.
- These placements and bonds resulted in share dilution, but brought in marquee investors and strengthened the balance sheet.
Exceptional Expenses and Cost Management
- Net profit improved strongly due to cost savings from using an internal dormitory for foreign workers, which lowered cost of sales by 22% versus 1HY2025.
- General and administrative expenses declined due to lower legal and professional fees, while other expenses fell sharply with the absence of equity-settled share-based compensation.
Strategic and Corporate Developments
- Acquired remaining 49% of Zara@ISOTeam Pte. Ltd. for full control and operational efficiency.
- Formed a joint venture for a training centre to upgrade foreign worker skills, addressing productivity and manpower risks.
- Technical upgrades and test-bedding continue for ISOTeam’s AI-enabled painting drones, with live demonstrations scheduled for 4Q FY2026 and fleet expansion in FY2027.
Business Outlook
- Singapore construction demand remains robust, with government forecasts of S\$39–46 billion per year through 2030, driven by public housing, infrastructure, and green initiatives.
- ISOTeam is well-placed to benefit from recurring regulatory-driven maintenance cycles (e.g., HDB repainting, renewal programmes), the SG Green Plan 2030, and URA’s masterplan for new homes and green spaces.
- Key growth drivers include the application of cool paints (now mandatory for HDB cycles), solar installations, and eco-retrofitting contracts.
Conclusion & Investment Recommendation
Overall View: ISOTeam delivered a resilient financial performance in 1HY2026, with strong margin expansion and improved profitability despite a revenue dip due to project timing. The company’s large order book, cost management initiatives, and alignment with long-term government policies provide a solid foundation for future growth. The share placement and convertible bond issues may dilute existing shareholders, but also strengthen the capital base and bring reputable investors on board.
For Current Shareholders: Hold. The company’s improved profitability, strong order book, and focus on automation/green initiatives suggest further upside, though investors should monitor the pace of revenue recovery and integration of new technologies.
For Prospective Investors (Not Currently Holding): Consider accumulating on weakness. ISOTeam’s exposure to Singapore’s structural construction demand, recurring public sector contracts, and margin-enhancing initiatives provide medium-term growth potential. However, be aware of dilution from recent placements and execution risks on new tech/green projects.
Disclaimer: This analysis is based solely on the company’s public financial disclosures and does not constitute investment advice. Please conduct your own due diligence and consult a licensed advisor before making any investment decisions.
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