NORDIC GROUP: Maintains Growth and Stability, Net Profit Up 10% in 1Q2025

Nordic Group delivered a robust start to 2025, continuing its trend of sustainable growth and operational resilience.

Stock price	34 c
52-week range	28 – 37 c
PE (ttm)	8.5
Market cap	S$136 m
Shares outstanding	399 m
Dividend yield (ttm)	5.2%
1-year change	19.3%
Source: Yahoo!

For the first quarter of 2025, the Singapore-listed company's revenue reached S$41.6 million, marking a 19% increase from S$35.0 million in 1Q2024.

In a 1Q business update yesterday (30 June), Nordic indicated that this growth was mainly powered by a stronger contribution from project services, reflecting both healthy demand and successful order book replenishment.

Nordic Group is a diversified group of companies providing solutions in areas of automation and systems integration; maintenance, repair, overhaul and trading; precision engineering; scaffolding; insulation services; petrochemical and environmental engineering services; cleanroom, air and water engineering services and structural engineering and construction services.

Profitability and Margins

Net profit for 1Q2025 came in at S$4.5 million (+10% year-on-year).
Earnings per share (EPS) rose to 1.1 cents (+10%).
Gross profit margin (GPM) remained stable at 24%.
Net profit margin (NPM), however, dipped slightly to 11% from 12% in the previous year, mainly due to foreign exchange losses in 1Q2025 versus gains in 1Q2024.

To put the latest quarter in perspective:

Full year 2024 revenue was S$158.4 million, with a GPM of 23% and NPM of 11%.

The 1Q2025 revenue of S$41.6 million and the margins reflect a stable business environment vis-a-vis FY2024.
Net profit for FY2024 was S$17.5 million, so the S$4.5 million in 1Q2025 is roughly 26% of last year’s total.
Order book stood at S$197.8 million as of March 31, 2025 (slight dip from S$201.6 million at end-2024), reflecting continued strong demand and project wins.

insider own7.25 High insider ownership at Nordic aligns management’s interests with minority shareholders but contributes to low liquidity for the stock.
(Note: Nordic Flow Control, Ensure Engineering and Starburst are subsidiaries of Nordic Group).

Balance Sheet and Financial Health

Nordic Group’s net asset value (NAV) per share: 33.5 cents (32.5 cents at end-2024).

The company further reduced its net gearing ratio to 6% (from 13% at end-2024), thanks to significant debt repayment.

As of end-April 2025, net gearing improved even further to 5.7%, underlining the group’s conservative financial management and strong balance sheet.

Order Book and Diversification

The healthy order book of S$197.8 million comprises a balanced mix of project and maintenance services.

Nordic’s revenue streams are well-diversified across industries such as onshore/downstream, marine/upstream, electronics manufacturing, infrastructure, and more.

This diversification, supported by a string of strategic acquisitions in recent years, helps reduce industry-specific risks and ensures resilience even in volatile market conditions.

Investor Takeaways

Resilience and Growth: Nordic Group’s steady revenue and profit growth, even amid currency headwinds, demonstrates strong execution and adaptability.
Balance Sheet Strength: With low gearing and rising NAV per share, Nordic is well-positioned to weather economic uncertainties and pursue further growth opportunities.
Management Alignment: High insider ownership (over 75% held by directors and executives) and ongoing share buybacks indicate management’s confidence in the company’s prospects and alignment with shareholder interests.

Nordic has bought back 516,500 shares so far this year, implying that the share price was undervalued.
Dividend Track Record: Nordic has a history of consistent dividend payments, which, combined with its financial strength, makes it attractive for income-focused investors.

NORDIC GROUP: Maintains Growth and Stability, Net Profit Up 10% in 1Q2025

See: Nordic's PowerPoint deck.

You may also be interested in: