VibroPower Corporation Limited: 3Q & 9M 2026 Financial Analysis

VibroPower Corporation Limited, a Singapore Mainboard-listed supplier and manufacturer of power generators, has released its unaudited financial results for the third quarter (3Q) and nine months (9M) ended 31 December 2025. Below is a structured analysis of the key metrics, trends, and noteworthy events relevant to investors.

Key Financial Metrics and Comparative Analysis

Historical Performance Trends

• Revenue: For 9M 2026, revenue more than doubled to S\$8.9 million from S\$3.8 million in 9M 2025, mainly due to a higher volume of project deliveries and improved completion of projects with higher margins.
• Gross Profit Margin: Improved from 14% in 9M 2025 to 32% in 9M 2026, reflecting better project execution and margin discipline.
• Net Profit: The group swung back to profitability with S\$0.7 million net profit for 9M 2026, versus a net loss of S\$1.4 million in 9M 2025.
• Net Asset Value: NAV per share rose from 5.47 to 6.61 cents during the period, indicating improvement in shareholders’ equity.

Exceptional Earnings, Expenses and Corporate Actions

• Impairment Provision: In the previous year (9M 2025), VibroPower recognized S\$0.54 million impairment losses on contract assets due to potential litigation. No further impairment was booked in the current period, as all adverse impacts were fully provided for by 31 March 2025.
• Disposal of Subsidiary: In November 2024, the group disposed of its entire stake in Shanxi Weineng (SXWN), recording a gain of S\$2.86 million in 9M 2025. The transaction provided S\$4.5 million net cash inflow. There were no major disposals in the current period.
• No Dividends: The board did not declare any dividend for the current or previous periods, citing prudence in conserving funds for working capital.

Related-Party Transactions and Fund Flows

• Significant related-party transactions were disclosed, including purchases and subcontractor costs to Mason Industries Pte Ltd and Vibro Holdings Pte Ltd—both controlled by persons related to the board and management.
• Loans were provided by a substantial shareholder, director, and their spouses, totaling over S\$4 million during the period, with repayments ongoing. Interest rates on these loans were disclosed as 2% per month for certain facilities, which is notably high.
• Legal services amounting to S\$107,000 were provided by a firm where a director is now employed, but the engagement pre-dated his appointment and he was not involved in the work.

Balance Sheet and Cash Flow Highlights

• Trade and Other Receivables: Decreased by S\$0.5 million, attributed to better collection efforts.
• Contract Assets: Increased by S\$0.9 million, reflecting unbilled progress claims from higher project deliveries.
• Inventories: Rose by S\$0.5 million due to materials purchased for projects scheduled for the final quarter of FY2026.
• Loans and Borrowings: Decreased slightly due to repayments, but the redeemable convertible bond (S\$1.65 million) was reclassified from non-current to current liabilities, as it is due within the next 12 months.
• Cash Flow: Cash and equivalents declined during the period due to higher working capital needs and loan repayments, partially offset by proceeds from the SXWN disposal.

Industry Trends and Outlook

• Project activity in Singapore, especially in public infrastructure, remains robust and is expected to drive continued demand for diesel generator sets.
• Cost pressures from elevated raw material prices persist, but the group is focusing on disciplined pricing, operational efficiency, and procurement optimisation to protect margins.
• The order book provides reasonable visibility for the next 12 months, with selective project acquisition and working capital optimisation being management’s stated priorities.
• Efforts are ongoing to secure financing for the group’s biomass power plant project in Malaysia, but funding had not yet been obtained as at the report date.

Divestments and Other Corporate Actions

• There were no IPOs, share buybacks, or new share placements in the period.
• No new acquisitions or major asset sales occurred after the disposal of the SXWN subsidiary.

Chairman’s Statement

The company did not provide a separate Chairman’s Statement. However, the tone of management commentary is cautiously optimistic, highlighting operational improvements, margin recovery, and a focus on capital discipline. There is acknowledgement of ongoing cost pressures and the need for prudent cash and project management.

Conclusion & Investment Recommendation

Overall, VibroPower’s financial performance for 9M 2026 is much improved compared to the prior year, with a return to profitability, stronger gross margins, and enhanced NAV per share. The company has successfully executed higher-margin projects and improved its working capital position. However, the absence of dividends, continued reliance on related-party funding at high interest rates, and a convertible bond maturing soon highlight ongoing balance sheet challenges. The outlook is stable but not without risks, especially regarding cost inflation and project execution.

• If you are currently holding the stock: Consider maintaining your position if you are comfortable with moderate risk. The return to profitability and margin improvement is a positive sign, but closely monitor upcoming debt maturities, cash flow, and the company’s progress in securing new project financing. Be alert for any adverse changes in receivables, contract asset quality, or related-party transactions.
• If you are not currently holding the stock: It may be prudent to remain on the sidelines until VibroPower demonstrates further balance sheet strengthening (e.g., refinancing of the convertible bond, successful project financing in Malaysia, or a return to dividend payments). The lack of dividends and ongoing related-party funding could indicate elevated risk.

Disclaimer: This analysis is based solely on the company’s published financial report for the period ended 31 December 2025. It is not investment advice. Please consult your financial adviser and consider your risk tolerance before making any investment decisions.

View VibroPower Historical chart here