NSL shareholders saw the stock close at SGD0.92 on Thursday, with the market already baking in a modest positive run over the past month. The headline from this earnings season is not the top line. It is the squeeze on profitability.

Net profit margin over the last year slipped to 6% while the stock now trades on a trailing P/E of 14.9x. For a basic materials player, that combination of thinner margins and a richer valuation puts the focus firmly on the longer term. The key question is how robust NSL’s multi year earnings story looks once you look past this compression.

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FY 2026 Earnings Summary

• Revenue (TTM FY 2026 vs. TTM FY 2025): SGD385.889 million vs. SGD310.597 million (higher level of sales in the latest period)
• Net Income from Continuing Operations (TTM FY 2026 vs. TTM FY 2025): SGD22.5 million vs. SGD26.000 million (lower earnings from continuing operations)
• Basic EPS (TTM FY 2026 vs. TTM FY 2025): SGD0.0617 vs. SGD0.0664 (lower earnings per share)
• Net Profit Margin (TTM FY 2026 vs. Prior Year): 6% vs. 8% (compressed profitability on each dollar of revenue)

Prefer clear visuals instead of another wall of financial tables and footnotes? See NSL’s full financial picture, including how its earnings power compares with the current valuation, in the interactive company report for NSL.

NSL earnings, revenue mix and the bullish angle

For anyone leaning positive on NSL, the latest year tells a simple story. The business generated revenue of SGD385.889 million compared with SGD310.597 million in the prior period. That points to healthy top line momentum across its industrial mix. Even with thinner margins, NSL still produced SGD22.5 million of net income from continuing operations. For a diversified industrial platform spanning building materials, environmental services and chemicals, many investors will see that combination of a broader revenue base and continuing profitability as a basic foundation for a constructive long term view.

Profit squeeze keeps NSL bear arguments alive

The other side of the coin is hard to ignore. Net profit margin slipped from 8% to 6%, and net income from continuing operations moved from SGD26.000 million to SGD22.5 million. Basic EPS eased from SGD0.0664 to SGD0.0617. That means shareholders are getting less earnings per dollar of sales and per share even with higher revenue. For a capital intensive industrial group like NSL, this compression backs up concerns around cost pressure, pricing power and the amount of investment needed just to hold earnings steady.

After thinner margins and a dividend that is not well covered by free cash flows, it is fair to ask whether this is a one off squeeze or a sign of deeper structural pressure. Review our independent risk analysis for NSL which shows 1 important warning sign

Take Charge Of Your Next Move

With NSL showing higher revenue alongside squeezed margins and a relatively full P/E, it can help to keep the stock on your radar rather than rush a decision. Register for free with Simply Wall St and add NSL to your Watchlist to track share price against fair value and watch how profitability trends evolve before choosing an entry point. Once you own it, use the Portfolio Command Center to cut through market noise and focus on the most important updates to your holdings. Round this out by tapping into crowd insights through the Community so you can spot potential catalysts or emerging risks early and stay ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.