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Deep Dive Into ISF Group Berhad Q4FY2025 Financial Results

ISF Group Berhad (KLSE: ISF) fourth-quarter results for the financial year ended 31 December 2025 demonstrate an exceptional growth trajectory, characterized by significant scale expansion and enhanced profitability margins.

The Group reported a quarterly revenue of RM24.57 million, culminating in a full-year top-line performance of RM98.55 million. This represents a substantial 80.26% year-on-year increase from the RM54.67 million recorded in FYE 2024, a surge primarily catalysed by the Group's strategic penetration into the high-growth data centre segment.

Revenue specifically attributed to data centre projects rose by approximately RM38.36 million, underscoring the success of the Group's pivot toward large-scale infrastructure piping.

Profitability metrics exhibited even more pronounced growth, as the Group successfully optimized its project mix toward higher-margin contracts. The full-year gross profit reached RM45.30 million, a 124.40% increase over the previous year.

This expansion was accompanied by a significant margin appreciation, with the annual gross profit margin climbing from 36.92% in 2024 to 45.97% in 2025.

Furthermore, the fourth quarter alone achieved a gross profit margin of 51.07%, reflecting the high efficiency of projects nearing completion. Consequently, the profit after tax for the financial year surged by 162.97% to RM25.34 million, yielding an improved net profit margin of 25.71% compared to 17.63% in the prior year.

The Group’s balance sheet remains robust, supported by a significant increase in total assets to RM71.48 million as of 31 December 2025. Liquidity is well-managed, with cash and bank balances, including fixed deposits, rising to RM20.47 million. While total liabilities increased to RM43.48 million, the Group’s equity base nearly doubled to RM28.01 million, primarily driven by the retention of current-year profits.

Looking ahead, the outlook for ISF Group Berhad is underpinned by an unbilled order book of RM125.69 million as of year-end 2025. Management maintains an optimistic stance, citing a projected 6.1% expansion in Malaysia’s construction industry for 2026 and sustained demand for industrial facilities and digital infrastructure.

$ISF (0390.MY)$

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