Union Steel 1H FY2026 profit falls 24% to S$4.6m on softer engineering margins; NAV per share climbs to 84.8 cents
Summary:
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Group revenue slipped 4.1% to S$56.2m as higher engineering sales only partly offset lower metals turnover and softer scaffolding activity.
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Net profit dropped to S$4.6m from S$6.1m a year earlier, with operating profit down on reduced gross profit (S$13.0m vs S$15.8m) despite lower admin and other operating expenses.
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Engineering remained the biggest earnings driver, while metals and scaffolding stayed profitable; other income of S$3.5m was supported by S$3.1m rental from leasehold properties and warehouses plus S$0.6m investment‑property rent.
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Net gearing rose modestly as borrowings increased to S$49.2m (30 June 2025: S$44.7m) to fund capex and a larger stake in associated company Eneco, but the Group still generated S$7.8m operating cash and ended with S$16.7m cash on hand.
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Equity attributable to shareholders grew to S$100.2m (30 June 2025: S$96.4m), lifting NAV per share to 84.80 cents from 81.64 cents, after paying a S$1.0m final dividend for FY2025.