REVIEW OF GROUP PERFORMANCE In FY2025, the Group delivered a strong revenue of S$968.9 million in FY2025, rising 12.5% year-on-year from S$861.2 million in FY2024, driven by growth in Electrification and Communications business segments in the Americas region. In line with revenue growth, Group gross profit rose 8.6%, from S$241.2 million in FY2024 to S$261.9 million in FY2025. Group gross profit margin in FY2025 remained relatively stable at 27.0% as compared to 28.0% in FY2024. This was despite cost provisions recognized in select divisions in the Americas region during the year totalling S$5.4 million, primarily arising from additional costs incurred in wastewater projects and the write-off of revenues in certain automation projects. Group operating expenses for FY2025 increased 13.2% year-on-year or S$24.6 million to S$211.5 million. This was mainly due to higher personnel costs of S$13.8 million primarily from higher operational labour costs to support the Electrification business expansion as well as higher building & equipment expenses of S$9.5 million as a result of more climate-controlled storage and materials and supplies required as part of the business expansion, and additional lease for manufacturing facilities in the Americas region. Other operating income increased to S$3.5 million in FY2025, mainly attributed to favorable exchange gains recognised. Group EBITDA increased 1.6%, year-on-year to S$83.5 million in FY2025, mainly driven by the growth in the Electrification business segment. With higher net interest expenses of S$0.3 million, offset by lower tax expense of S$0.8 million year-on-year, the Group net profit for FY2025 grew 42.3% to S$37.5 million from S$26.3 million in FY2024 after exceptional item. The net profit margin increased by 0.8 percentage points, from 3.1% in FY2024 to 3.9% in FY2025. The Group earnings per ordinary share rose to 5.26 Singapore cents for FY2025, a 34.5% increase from 3.91 Singapore cents for FY2024. PERFORMANCE OF BUSINESS SEGMENTS On the back of the electrification megatrend, the Electrification business segment was the largest revenue contributor in FY2025, contributing 52.3% of revenue. This was followed by the Communications business segment and Automation business segment that contributed 27.0% and 20.7% of Group revenue respectively. Revenue from the Electrification segment increased 16.6% in FY2025 to S$507.0 million as compared to S$434.8 million in FY2024, mainly driven by revenue recognised from major contracts secured in the Americas region in prior years and earlier this year in the data centre and liquefied natural gas (“LNG”) markets. In tandem with revenue growth, EBITDA for the Electrification segment grew 7.1% from S$42.7 million in FY2024 to S$45.7 million in FY2025. This segment reported a lower EBITDA margin of 9.0% due to lower gross margin attributable to wastewater project revenue reversal amounting to S$2.4 million and increased operating costs stemming from higher operational labour and building & equipment costs to support the Electrification business expansion totalling S$11.9 million, which was offset by a one-off net gain on disposal of held for sale of S$5.5 million during the year. The Communications segment experienced a revenue growth of 12.8%, increasing from S$232.0 million in FY2024 to S$261.7 million in FY2025. This growth was mainly driven by revenue contributions from newly acquired subsidiaries, which added S$35.8 million to revenue. Despite revenue growth, the EBITDA margin for the Communications segment declined 1.2 percentage points, primarily due to job delays that resulted in higher downtime for the technical service team in Australia and New Zealand. This impact was partially offset by the improvement in gross margins following the completion of several projects in Singapore. Consequently, the Communications segment’s EBITDA in FY2025 increased 1.4% year-on-year to S$26.0 million. The Automation segment revenue recorded a modest growth of 3.0%, increasing from S$194.4 million in FY2024 to S$200.2 million in FY2025 mainly attributed to higher project revenue achieved in the Americas region. This segment’s FY2025 EBITDA was lower by 15.1% or S$2.1 million year-on-year mainly due to plant and equipment and technical know-how intangibles being written off amounting to S$5.1 million in FY2025 coupled with write-off of revenues of S$3.0 million in some automation projects in the Americas region. OPERATIONS AND FINANCIAL OVERVIEW ANNUAL REPORT 2025 37
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