Mun Siong Engineering (MF6) investor relations material

Executive summary

• H1 2026 revenue fell 6.0% YoY to $29.9m, while gross margin rose to 8.8% from 1.1% and net loss narrowed to $1.2m from $3.5m.

• Improved US operations and cost control drove the recovery; operating cash flow was positive at $1.0m and cash ended the period at $12.6m.

Financial highlights

• Revenue was $29.866m versus $31.771m; cost of sales declined 13.4% to $27.229m, lifting gross profit to $2.637m from $0.345m.

• Operating loss narrowed to $0.889m from $3.391m; loss before tax was $0.955m versus $3.441m, and net loss was $1.186m versus $3.547m.

• Basic and diluted EPS were both a loss of 0.20 Singapore cents, versus a loss of 0.61 cents in H1 2025.

• Other operating items swung to $0.139m income from $0.784m expense, mainly reflecting a $0.1m FX gain versus a $0.8m FX loss; other income declined due to lower disposal gains.

Outlook and guidance

• Singapore and US operations are expected to remain key H2 2026 revenue drivers; operating losses are cautiously expected to narrow for FY2026.

• US repair and fabrication are expected to support steadier year-round revenue and cash flow; FY2026 gross profit is expected if H1 margins are sustained.

• Malaysia revenue is unlikely to contribute meaningfully in FY2026, with gross losses expected to continue; commencement timing for HIMS orders remains under discussion.

• Taiwan revenue and profit contribution are expected to be insignificant in FY2026; possible turnaround tenders at two CPC Taiwan plants may be pursued.

• Guidance for the nine months ending 30 September 2026 is expected in November 2026.