Singapore's ISOteam FY26 revenue declines on project timing issues, margins lifted by cost cuts

Isoteam

26/08/2026 12:20

Overview
Singapore building maintenance provider's FY2026 revenue declined yr/yr, mainly due to core segment weakness
FY2026 gross margin rose to 18.3%, but net profit dropped to S$4.9 mln

Outlook
ISOteam maintains order book of S$185.3 mln, to be delivered over two to three years
Company expects Singapore's built environment sector to remain resilient in the coming year

Result Drivers
CORE SEGMENT WEAKNESS - Revenue declined due to lower contributions from core R&R, A&A and C&P segments, mainly linked to timing of project completions and revenue recognition
COST SAVINGS - Gross profit margin improved to 18.3%, mainly due to cost savings from converting part of headquarters into worker housing
NICHE SERVICES GROWTH - Growth in the Others segment, including renewable solutions and niche services, partially offset lower core segment revenue

Company press release: ID:nSN1BfR5H

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
 
S$105.7  mln
 
FY Net Income
 
S$4.9 mln
 
FY Gross Margin
 
18.3%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for ISOTeam Ltd is S$0.11, about 59.4% above its August 26 closing price of S$0.07
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Aug 25 - Singapore's Lum Chang Holdings FY net profit soars, helped by construction rev strength
Aug 26 - Hong Kong's Build King interim profit rises on lower administrative expenses
Aug 25 - Hong Kong's C Cheng Holdings H1 revenue falls on lower contract sums, supplementary contracts

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)