NORDIC GROUP’s 1Q Update: Share Sales, M&A, and Growth in Every Segment

Over the past few years, Nordic Group has bought back its shares amounting to a cumulative 2.08 million shares (see table).

The volume-weighted average price is just S$0.384 versus 58 cents, the current trading price, resulting in Nordic sitting on substantial unrealized gains.

Buy Period	Quantity	Cumulative Volume	Cumulative % of Total Shares
2022	263,900	263,900	0.07
2024	707,700	971,600	0.24
April 2025	516,500	1,488,100	0.37
August 2025	245,000	1,733,100	0.43
January 2026	8,000	1,741,100	0.44
March 2026	109,500	1,850,600	0.46
April 2026	121,800	1,972,400	0.49
May 2026	116,000	2,088,400	0.52
Volume Weighted Average Price	S$0.384

Those repurchased shares are part of a pile that some funds are eyeing, having noted how Nordic consistently generates steady cash, buys back its own stock at a discount, and has management with a lot of skin in the game.

As Singapore's stock market turned bullish, Nordic has received inquiries for as many as 100 million shares (which would include new shares or insider shares), said Executive Chairman Chang Yeh Hong in reply to a shareholder question on the fate of the treasury shares during a 1Q earnings call.

Nordic (market cap: S$230 million) has limited free float as insiders own ~75% of the company.

Management is taking a highly calculated approach regarding when and how to offload the treasury shares. Issuing new shares (likely at higher prices than currently) is a distinct possibility to improve liquidity.

Because Nordic is currently generating robust cash flows, there is no financial pressure to sell the treasury shares, said Mr Chang.

ChangYehHong12.25 Chang Yeh Hong, Executive Chairman, Nordic GroupA key consideration dictating the timing of a block sale is the group's orderbook.

Mr Chang said: "My simple thinking is that since we're generating cash right now, there's no need for us to raise money. There will be a time if we do an acquisition, which we probably will, at the same time, if my team manages to secure significant projects... then I think that would be the most opportune time for us to offload a block largely to finance the projects."

1Q 2026: Steady Growth and Expanding Margins

Nordic kicked off 2026 by reporting a 149% surge in its net cash position, which now stands at S$10.2 million.

While total revenue for the quarter remained relatively flat at S$41.8 million (+0.5% year-on-year), profitability jumped by 11.1% to S$5.0 million, and net profit margins expanded by 1.2 percentage points to reach 12.0%.

Management explained that this operating profit boost was driven by lower finance costs and favourable foreign exchange rates.

Analyst Perspectives: A Multi-Year Upcycle

PhillipCapital analyst Hashim Osman maintained a “BUY” rating on Nordic, raising the target price to S$0.68 from S$0.63.

He highlighted that Nordic is currently trading at an attractive 8.4x FY26e P/E, with a multi-year project upcycle firmly intact.

The analyst pointed out that Nordic's margin accretion is not just a result of macroeconomic factors like lower finance costs and favourable exchange rates, but also a deliberate operational shift towards higher-complexity, higher-margin projects in the FPSO, semiconductor, and defence sectors.

With a strong order book of S$213.5 million (+8% year-on-year), PhillipCapital opined that the company has earnings visibility extending well into 2028.

Higher target price

"We maintain a BUY rating with higher TP of S$0.68 (prev: S$0.63) as we adjust our long-term growth rate assumptions. Nordic trades at an 8.4x FY26e P/E. We expect further growth from FPSO deliveries (aiming for c. 3 deliveries per year), and Avitools Thailand mass production of battery storage frame components."

-- Hashim Osman, analyst, PhillipCapital

A Robust Pipeline and Strategic Expansion

Looking ahead, Nordic is aggressively pursuing an impressive amount of jobs across its core divisions.

It said its Marine division is seeking S$61 million worth of contracts across 152 vessels.

The Semiconductor solutions pipeline tracks over S$142 million in quotations, with S$55 million flagged as mid-to-high conviction opportunities across Singapore, Malaysia, and India.

Concurrently, the Defence pipeline sits at a formidable S$135 million (85% concentrated in Singapore), bolstered by ongoing and future decommissioning and installation opportunities linked to the relocation of Paya Lebar airbase to Changi and Tengah.

Another acquisition?

A growth catalyst on the horizon is the AviTools Thailand operation.

NORDIC
Share price: $0.58	Target: $0.68

This facility will anchor the production of components that enable industrial battery storage.

It's a classic "picks and shovels" play on the green energy and AI boom.

PhillipCapital, which has a 68-cent target price for Nordic stock, expects the facility to reach an annual revenue run-rate of US$20 million as production shifts from small batch to mass production.

Nordic's S$213.5 million orderbook includes S$146.9 million in recurring maintenance contracts which creates a steady income stream.

To further its growth, Nordic is actively evaluating mid-sized M&A targets, continuing a strategy that has seen it make 7 acquisitions since 2011.

Mr Chang said, "We are looking at a few targets which we think are interesting."

NORDIC GROUP’s 1Q Update: Share Sales, M&A, and Growth in Every Segment

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