INNEOVA Holdings Reports Fiscal Year 2025 Financial Results; Operating Cash Flow Increases 75% as Engineering Transformation Advances

SINGAPORE, May 18, 2026 (GLOBE NEWSWIRE) -- INNEOVA Holdings Limited (“INNEOVA Holdings” or the “Company”) (Nasdaq: INEO), a Singapore-based engineering solutions provider focused on maximising uptime, optimising total cost of ownership, and extending asset longevity through sustainable engineering, today announced its audited financial results for the fiscal year ended December 31, 2025.

Fiscal 2025 was the first full year of operating under the INNEOVA Holdings brand and the first year that the acquired INNEOVA Engineering business was integrated across the platform. Against a backdrop of softer international demand in the second half of the year, the Company strengthened its operating cash generation, reduced bank borrowings, and executed three strategic milestones — a multi-year overhaul contract win from PSA Singapore, a Hydrogen Pathfinder Pilot with HyCee Pte. Ltd., and, after year-end, a partnership to distribute XCMG electric material handling equipment in Singapore.

Key Financial Highlights for Fiscal Year 2025

Revenue: $58.4 million, a 6.9% decrease from $62.7 million in the prior year. The decline was primarily attributable to a $5.7 million reduction in revenue from the Middle East and Other Countries, driven by softer customer demand, partially offset by an increase of approximately $1.4 million in Singapore, where revenue grew across multiple business lines.

Gross Profit: $11.2 million, compared to $12.3 million in 2024. Gross profit margin remained largely stable at 19.2%, compared to 19.6% in the prior year, reflecting continued pricing discipline and a favorable mix shift in the On-Highway Business, where segment gross margin expanded to 23.0% from 21.6%.

Selling and Distribution Expenses: $1.2 million, a 30.9% decrease from $1.7 million in the prior year, primarily reflecting lower promotion and marketing expenses.

Administrative Expenses: $10.1 million, compared to $9.4 million in the prior year. The increase was driven primarily by a $0.6 million increase in legal and professional fees associated with the Company’s first full year of compliance costs as a Nasdaq-listed entity, and a $0.3 million increase in staff costs.

Net Loss: $0.4 million, compared to net income of $0.4 million in 2024. The change reflects lower revenue, higher administrative expenses associated with public-company compliance, and increased other expenses, partially offset by a $0.7 million income tax benefit primarily attributable to a deferred tax provision.

Net Cash Provided by Operating Activities: $4.4 million, an increase of approximately 75% from $2.5 million in the prior year. The improvement was driven by a $3.2 million reduction in accounts receivable and continued working capital discipline.

Bank Borrowings: $18.9 million as of December 31, 2025, a reduction of approximately $3.4 million from $22.3 million as of December 31, 2024, reflecting net repayments during the year.

Operational Highlights and Recent Developments

Acquisition of INNEOVA Engineering Pte. Ltd. (April 30, 2025): INNEOVA Holdings completed the acquisition of INNEOVA Engineering, extending the Company’s platform from parts distribution into system lifecycle analysis, MRO services, and turnkey engineering solutions. The new segment contributed $4.6 million in revenue for fiscal 2025.

Hydrogen Pathfinder Pilot with HyCee Pte. Ltd. (September 25, October 10, and October 14, 2025): INNEOVA Engineering signed a Memorandum of Understanding and subsequently a Strategic Cooperation Agreement with HyCee Pte. Ltd., a joint venture of Jiangsu Guofu Hydrogen Energy Equipment Co. Ltd., to advance the deployment of a Hydrogen Pathfinder Pilot in Singapore. The partnership supports Singapore’s National Hydrogen Strategy, which targets net-zero emissions by 2050 and contemplates hydrogen supplying a meaningful share of the nation’s power needs over the long term.

Multi-Million Dollar PSA Singapore Contract (October 23, 2025): INNEOVA Engineering was awarded a multi-year overhaul tender valued in the multi-million dollar range from PSA Singapore, a leading global port operator. The award marks the third consecutive overhaul tender granted to INNEOVA Engineering by PSA since 2018, building on a relationship spanning more than 20 years.

CEO Letter to Shareholders (November 18, 2025): Jimmy Neo, Chief Executive Officer, issued a letter to shareholders titled “Charting INEO’s Next Chapter: Powering a Sustainable and Intelligent Future,” outlining the Company’s strategic priorities, transformation framework, and long-term value-creation roadmap.

XCMG Electric Material Handling Equipment Distribution Partnership (January 21, 2026): After year-end, INNEOVA Engineering was granted a partnership to distribute XCMG electric material handling equipment in Singapore, marking the Company’s strategic expansion from parts and services into full unit sales. INNEOVA Engineering has established a near-term target of 30 electric forklift units, supported by accelerating demand for electrified material handling solutions aligned with Singapore’s Green Plan 2030.

Management Commentary

“Fiscal 2025 was a year of platform-building,” said Mr. Jimmy Neo, Chief Executive Officer of INNEOVA Holdings. “We completed the integration of INNEOVA Engineering, secured our third consecutive multi-year tender from PSA Singapore, and signed a Strategic Cooperation Agreement with HyCee that positions us as a pathfinder for hydrogen adoption in Singapore. The XCMG distribution partnership announced in January 2026 extends that work into electric material handling. While softer international demand in the second half of the year weighed on consolidated revenue, our operating cash flow rose to $4.4 million from $2.5 million, and we reduced bank borrowings by $3.4 million.

Forward Outlook

“We are entering 2026 with a more diversified revenue base, a lower-leverage balance sheet, and a clearer engineering story. We continue to expand into infrastructure space and build on the following areas:

Increased recurring engineering services revenue mix expansion - the Company continued to strengthen long-term maintenance partnerships across mission-critical industries.

Platform for lifecycle solutions - Improved service delivery capabilities through investments in engineering support and technical operations, and long-term service contracts create opportunities for the Company to expand into higher-value lifecycle solutions.

Operational Improvement - Continued execution of operational efficiency initiatives focused on procurement optimization, inventory management, and cost discipline.

Margin Improvement - Maintained focus on margin improvement initiatives across core engineering and parts services operations.

Annual Report Now Available

On May 15, 2026, the Company filed its Annual Report on Form 20-F with the Securities and Exchange Commission, which can be accessed at www.sec.gov or by clicking here.

About INNEOVA Engineering
INNEOVA Engineering is an engineering solutions provider offering system lifecycle analysis and turnkey solutions across transport, healthcare, defence, utilities, and facility management. The Company delivers integrated services—including cooling systems, flow management, and fleet maintenance— all designed to maximise asset uptime and longevity through innovation, reliability, and sustainability across Asia. Committed to optimising total cost of ownership (TCO) and future-proofing essential infrastructure, INNEOVA Engineering ensures operations remain resilient from concept to maintenance.

About XCMG (XuZhou Construction Machinery Group)
XCMG is a leading global manufacturer of construction and industrial machinery, consistently ranked among the world’s top construction equipment companies. With a strong focus on innovation, safety, and sustainability, XCMG offers a comprehensive portfolio spanning lifting, earthmoving, road machinery, and industrial vehicles, including electric material-handling equipment. XCMG operates in more than 190 countries and regions worldwide, supporting customers with advanced manufacturing, digitalisation, and low-carbon solutions.

About INNEOVA Holdings
INNEOVA Holdings (formerly known as SAG Holdings Limited) is a leading Singapore-based solution-driven partner for industries where uptime and reliability are mission-critical. By combining deep engineering expertise, digital capabilities, and sustainable practices, INNEOVA delivers integrated solutions that optimise lifecycles, maximise uptime, and extend asset longevity across its Parts Services and Engineering Services business segments.

Parts Services: Supporting mission-critical operations with comprehensive parts management and supply solutions to ensure availability, reliability, and maximum uptime.

Engineering Services: Providing system lifecycle analysis and MRO services, enhanced by connectivity, digitalisation, and data analytics. INNEOVA enables customers to future-proof assets, achieve maximum uptime, and optimise total cost of ownership (TCO).

For more information, visit https://www.inneova.co.

Safe Harbor Statement
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include but are not limited to, statements relating to the expected trading commencement and closing dates. The words “anticipate,” “believe,” “seeks,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the preliminary prospectus led with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and INNEOVA Holdings Limited specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

Ivy Lee / Jamie Neo
INNEOVA Holdings Limited
Tel: +65 6383 7540
Email: ir@inneova.co

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