Zicom Group flags FY26 net profit of S$5.0–5.5m as project timing weighs on revenue
Zicom Group expects to report net profit after tax of between S$5.0m and S$5.5m for the full year ended 30 June 2026 (FY26), down from S$7.75m in the prior corresponding year. Consolidated revenue is forecast at S$94m, a 30% decline from S$135m.
These are preliminary figures drawn from unaudited accounts and remain subject to adjustments from audit. Despite the softer result, the board indicated the Group remains profitable across all segments, with the board confident of a return to momentum.
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FY26 guidance at a glance
The following table sets out the expected FY26 results against the prior corresponding year.
| Metric | FY26 (expected) | FY25 (prior year) | Change |
|---|---|---|---|
| Consolidated revenue | S$94m | S$135m | −30% |
| Net profit after tax | S$5.0–5.5m | S$7.75m | ~−35% |
All figures are preliminary and unaudited, and remain subject to adjustments from audit.
What drove the softer result
The board attributed the softer result to two principal factors:
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Completion of all gas processing EPC contracts, with new tenders deferred due to political changes over the past two years. This culminated in a new government in February 2026 in the host country of the Group’s major projects. Projects in the pipeline were reviewed and repackaged, with new tenders released from July onwards.
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Deteriorating global geopolitics, which the board stated impacted business decisions across all segments, affected supply ecosystems, and consequently slowed demand.
The board framed the EPC gap as a matter of timing and deferral, noting that the pipeline was reviewed and repackaged, with new tenders being released.
Understanding EPC contracts and why they matter for Zicom
For Zicom, this dynamic helps explain why revenue can swing sharply from one year to the next.
- Revenue depends heavily on tender cycles and award timing.
- Political stability in the host country influences when tenders are released.
Chairman points to stronger prospects ahead
Chairman Sim Giok Lak pointed to improving conditions, noting that political stability has now been achieved in the host country of the Group’s major projects, with new tenders released from July.
Sim Giok Lak, Chairman
“We are confident that with political stability now achieved, the momentum will accelerate and prospects ahead for us remain strong.”
The Chairman added that the Group continues to strengthen the organisation and reset business directions to align with the changing economic landscape.
What it means for investors
The softer result is driven by the timing of EPC project awards and the wider geopolitical environment. With gas processing EPC contracts completed and new tenders only re-released from July 2026, the revenue gap reflects deferral.
According to the board, all business segments are expected to remain positive and profitable in the coming years, subject to the geopolitical situation not deteriorating any further. This caveat is central to the outlook, given the role geopolitics has played in slowing demand across the Group’s segments.
The near-term catalyst for investors to watch is the resumption of new tenders from July 2026, which the board expects to accelerate momentum. As these are preliminary and unaudited figures subject to adjustments from audit, the final reported results may differ once the audit is complete.
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