NSL 1H FY2026 profit halves to S$10.3m on softer Malaysia precast and weak environmental services; interim dividend cut to 2 cents
Summary:
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Group revenue fell 11% to S$159.4m for the six months to 31 December 2025, with gross profit down 31% to S$30.8m as lower precast sales in Malaysia and weaker environmental services offset better Dubai and Finland PBU performance.
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Profit before tax dropped 38% to S$15.6m and profit attributable to shareholders slid 46% to S$10.2m (EPS 2.73 cents vs 5.07 cents), though results were supported by a S$1.0m write-back of trade receivable allowances and impairment reversals on Malaysian precast assets.
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Environmental Services swung from S$2.8m PBT to a S$4.4m loss on loss of a key industrial wastewater customer and lower refined fuel oil/deslopping volumes, while Chemicals returned to a S$0.9m profit after exiting the loss-making roadstone business.
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Operating cash flow turned negative S$6.9m on working-capital outflows (higher inventories and receivables in Malaysia and Dubai), but cash and bank balances remained strong at S$127.0m, with net cash of about S$111m after modest borrowings.
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Net asset value per share rose to S$0.81 (30 June 2025: S$0.79), and the board declared a reduced interim dividend of 2.0 cents per share (FY2025 interim: 3.0 cents), citing softer environmental services and continued weakness in Finland housing markets even as precast orderbooks in Singapore, Malaysia and Dubai support a “satisfactory” outlook.