Frencken Group (E28) H2 2025 earnings summary

Executive summary

• Revenue for FY2025 rose 8.9% year-over-year to S$865.1 million, driven by Mechatronics, offsetting a slight dip in Advanced Plastics Solutions (APS).

• Net profit attributable to equity holders increased 5.4% to S$39.1 million, with EPS at 9.16 cents, up from 8.69 cents in FY2024.

• Gross profit margin remained stable at 14.3% (FY2024: 14.5%).

• Final dividend proposed at 2.75 cents per share, up from 2.61 cents last year.

Financial highlights

• Mechatronics revenue grew 10.2% to S$778.4 million, led by semiconductor (+16.7%), medical (+5.2%), and industrial automation (+48.6%).

• APS revenue declined 3.0% to S$83.1 million, with automotive and electronics segments both down.

• Operating cash flow for FY2025 was S$103.5 million; net cash increased by S$44.4 million to S$161.2 million.

• Total borrowings dropped to S$22.3 million (FY2024: S$86.6 million); net cash position of S$139.6 million.

• Net asset value per share rose to S$1.11 (FY2024: S$1.02).

Outlook and guidance

• Cautiously positive outlook for FY2026 amid macroeconomic uncertainties and volatile global trade.

• Semiconductor segment expected to remain a key driver, especially in Asia; Europe to recover in 2H26.

• Medical and analytical life sciences to support growth; APS division to benefit from automotive radar and robotics initiatives.

• 1H26 revenue expected to be flat year-over-year, but net profit anticipated to rise.