ISDN Holdings Limited reported QQ2 2025 results with a striking top-line expansion and meaningful margin expansion at the gross and operating levels, yet net income remains historically thin. Revenue reached SGD 106.45 million, up 115.19% year-over-year and 100% quarter-over-quarter, supported by stronger project activity in motion control and engineering services. Gross profit rose to SGD 24.45 million, delivering a gross margin of 22.97%. Operating income amounted to SGD 7.18 million, reflecting an operating margin of 6.74% and EBITDA of SGD 9.60 million (EBITDA margin of 9.02%). Despite the improved profitability at the gross and operating levels, net income was only SGD 0.64 million, with a net margin of 0.60%, underscoring the weight of interest expenses ( SGD 1.22 million) and taxes ( SGD 1.81 million) on the bottom line.
Liquidity remains solid on a working-capital basis, with a current ratio of 1.78 and a quick ratio of 1.27, though the cash ratio is modest at 0.43. The company exhibits a constructive liquidity position and modest leverage: debt ratio 0.186, debt-to-capitalization 0.279, and interest coverage of 5.88x. Cash flow indicators show operating cash flow per share of SGD 0.0161 and free cash flow per share of SGD 0.00814, with no dividend declared in QQ2 2025. From a valuation standpoint, ISDN trades at a price-to-earnings ratio around 27.5x, price-to-book 0.70x, and price-to-sales 0.664x, with an enterprise value multiple of 8.53x. The earnings performance is underpinned by a strong top-line trajectory but requires sustained margin discipline to convert revenue gains into durable profitability.
Overall, the QQ2 2025 results position ISDN to benefit from automation and data-center trends, while highlighting the need to advance cost control, financing efficiency, and backlog execution to lift net income and risk-adjusted returns in the near term.