Key Highlights

  • Zicom Group Limited (ASX:ZGL) expects FY26 consolidated Revenue of approximately S$94 million, down 30% from S$135 million in the previous corresponding year.
  • FY26 net profit after tax is expected to be between S$5.0 million and S$5.5 million, compared with S$7.75 million previously.
  • The completion of gas processing EPC contracts and delays to new tenders were the principal factors affecting revenue during the year.
  • New tenders have begun to emerge following political changes in the major project market, while the group continues to reposition its operations amid changing global conditions.

Zicom Group Limited (ASX:ZGL) expects a significant decline in revenue and Earnings for the financial year ended 30 June 2026, according to preliminary accounts released on 17 August 2026. Consolidated revenue is expected to reach approximately S$94 million, compared with S$135 million in the previous corresponding period, while net profit after tax is expected to fall to between S$5.0 million and S$5.5 million from S$7.75 million.

Revenue Decline and Project Timing

The principal Factor behind the revenue reduction was the completion of the group's gas processing engineering, procurement and construction contracts. New tenders were deferred during the past two years as political developments affected the operating environment in the host country where the group's major projects are located.

The timing of these contracts is significant because EPC projects can produce substantial changes in annual revenue depending on tender awards, project commencement and completion schedules. With existing gas processing contracts completed and replacement work delayed, the group entered FY26 without the same level of project contribution available in the prior year.

The company stated that projects previously in its pipeline have been reviewed and repackaged. From July 2026, new tenders began to be released, providing a potential change in the project environment after the disruption caused by political uncertainty.

Earnings Performance

The expected FY26 net profit after tax of S$5.0 million to S$5.5 million represents a reduction of approximately 29% to 35% compared with the previous year's S$7.75 million, depending on the final audited outcome. Revenue is expected to decline by approximately 30%.

The comparatively smaller reduction at the upper end of the profit guidance range indicates that earnings have not declined in direct proportion to revenue. However, the preliminary nature of the figures means that the final result remains subject to audit adjustments.

Zicom's Business structure spans specialist equipment Manufacturing and engineering services, including activities connected with offshore marine, oil and gas, construction, precision engineering and automation, and industrial and mobile equipment. The company's website describes operations across Australia and several Asian markets.

Political and Geopolitical Factors

The company's latest guidance highlights the relationship between project activity and the broader geopolitical environment. Political changes in the host country contributed to delays in tender activity, culminating in a change of government in February 2026.

The group has indicated that political stability has since improved and that tender releases have resumed. This creates a different operating backdrop for the new financial year, although the timing and scale of future project awards remain dependent on customer decisions and broader market conditions.

Beyond the gas processing segment, Zicom said deteriorating global geopolitics affected business decisions across its operating segments. Supply ecosystems were also affected, contributing to slower demand.

Business Repositioning

In response to the changing economic environment, the group has continued to strengthen its organisation and reset business directions. Management has stated that all business segments are expected to remain profitable in the coming years, subject to geopolitical conditions not deteriorating further.

This approach reflects an emphasis on maintaining profitability across the group's diversified engineering activities while rebuilding the project pipeline. The company's existing operations include mechanical, hydraulic, precision and instrumentation engineering, supporting products such as offshore marine deck machinery, fluid regulating and metering stations, concrete mixers and automated equipment.

FY27 Operating Outlook

The early tender activity following the political transition provides an important reference point for Zicom's next stage of operations. The release of new tenders from July suggests that the project pipeline is beginning to move again after an extended period of delay.

However, the FY26 guidance also demonstrates the sensitivity of the group's financial performance to project timing. Future revenue will depend on the conversion of tenders into contracts, project execution schedules and Demand across its broader operating segments.

Conclusion

Zicom Group's FY26 profit guidance points to a year of lower revenue and earnings following the completion of major gas processing EPC contracts and delays to replacement tenders. The expected S$94 million of revenue and S$5.0 million to S$5.5 million of net profit reflect the effect of project timing and geopolitical disruption. At the same time, the release of new tenders from July 2026 and the group's ongoing business repositioning provide important developments for the next reporting period. The final FY26 figures remain subject to audit adjustments, while future performance will depend on tender conversion, project activity and the broader geopolitical environment.