NSL Ltd: 2H 2025 Financial Results Analysis
NSL Ltd released its interim financial statements for the six months ended 31 December 2025. The report covers performance across its key divisions—Precast & PBU, Environmental Services, Chemicals, and Others—providing investors with a comprehensive view on revenue, earnings, and dividends. Below, we break down the highlights, compare period-over-period metrics, and discuss material business events.
Key Financial Metrics
| Metric |
2H 2025
(31 Dec 2025) |
Previous Half
(30 Jun 2025) |
2H 2024
(31 Dec 2024) |
YoY Change |
QoQ Change |
| Revenue |
S\$159.4m |
S\$179.7m |
S\$179.7m |
-11% |
-11% |
| Gross Profit |
S\$30.8m |
S\$44.8m |
S\$44.8m |
-31% |
-31% |
| Profit Before Tax |
S\$15.6m |
S\$25.3m |
S\$25.3m |
-38% |
-38% |
| Net Profit (to Equity Holders) |
S\$10.2m |
S\$18.9m |
S\$18.9m |
-46% |
-46% |
| EPS (cents) |
2.73 |
5.07 |
5.07 |
-46% |
-46% |
| Net Asset Value (per share) |
S\$0.81 |
S\$0.79 |
S\$0.79 |
+3% |
+3% |
| Dividend (per share) |
S\$0.02 (Interim) |
S\$0.015 (Final) |
S\$0.03 (Interim) |
-33% vs prior interim |
+33% vs prior final |
Segment Performance
- Precast & PBU: Revenue decreased 6% YoY due to project delays in Malaysia, partially offset by improved performance in Dubai and Finland. Profit before tax fell 19%, mainly from lower Malaysian contributions.
- Environmental Services: Revenue down 32% YoY. Division swung to a S\$4.4m loss (from S\$2.8m profit) due to loss of a key customer and lower sales volume.
- Chemicals: Revenue down 22% YoY, but division returned to profitability following the exit of a loss-making roadstone business.
- Others: Revenue decreased slightly, with losses narrowing due to lower operating costs.
Cash Flow and Balance Sheet
- Operating cash flow was negative S\$6.9m (vs positive S\$15.4m the prior year), mainly due to larger working capital outflows.
- Net cash outflow for the period was S\$6.5m, with increased capital expenditure and lower operating inflows.
- Cash and equivalents stood at S\$119.1m, with S\$7.9m in bank deposits pledged.
- Net asset value per share improved to S\$0.81.
Exceptional Items & Related-Party Transactions
- Write-back of impairments (property, plant, equipment, right-of-use assets, and intangibles) in Malaysia improved net loss figures.
- Related-party purchases totaled S\$4.7m for the period.
- Bold Hill Trading Sdn. Bhd. became a wholly-owned subsidiary after a minority buyout.
Dividend Comparison
| Dividend Type |
Current Period |
Previous Period |
YoY Change |
| Interim |
S\$0.02/share (to be paid 18 Mar 2026) |
S\$0.03/share (paid 11 Jun 2025) |
-33% |
| Final |
S\$0.015/share (paid 26 Nov 2025) |
S\$0.015/share |
No change |
Business Events & Outlook
- No known subsequent events requiring adjustments.
- Environmental Services faces challenging conditions; focus on ramping up capacity utilization to improve performance.
- Precast business remains satisfactory with order books in Singapore, Malaysia, and Dubai, barring unforeseen delays. Finland’s PBU business is still affected by weak housing market.
- No mention of IPOs, fundraising, or share buybacks.
- General mandate for interested person transactions obtained at EGM (Oct 2025).
Chairman’s Statement
No explicit Chairman’s Statement was included in this report. The tone across management commentary is cautious and factual, highlighting both operational challenges and mitigation strategies—particularly for Environmental Services and Malaysia operations. No forward-looking optimism or pessimism was directly expressed.
Conclusion & Investor Recommendations
Summary:
NSL Ltd’s 2H 2025 performance is weak compared to the prior year, with double-digit declines in revenue, gross profit, and EPS. Environmental Services suffered a major setback, affecting overall profitability, while Precast & PBU showed resilience outside Malaysia. Cash flow deteriorated, and dividends were reduced. Management’s outlook is cautious, focusing on operational improvements and cost management.
If you are currently holding NSL Ltd shares:
- Consider holding if you believe the precast business recovery (especially in Dubai and Singapore) will offset Environmental Services’ weakness.
- Monitor dividend policy and business segment performance closely, as further earnings weakness could impact future payouts.
- If you are risk-averse, and business recovery is not apparent, consider reducing exposure.
If you are not currently holding NSL Ltd:
- Wait for evidence of recovery in Environmental Services or sustained improvement in Precast & PBU before initiating a position.
- Dividend yield is stable but has decreased; future payouts may depend on earnings recovery.
- Monitor for any signs of turnaround or strategic action (e.g., restructuring, divestments) that could materially improve performance.
Disclaimer: This analysis is based strictly on the information provided in NSL Ltd’s interim financial report for 2H 2025. It does not constitute investment advice. Investors should conduct their own due diligence and consider their risk tolerance before making any investment decisions.
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