InnoTek (M14) H2 2025 earnings summary

Executive summary

• Tenth consecutive year of profitability; FY25 revenue fell 11.8% YoY to S$209.9m and net profit attributable to owners declined 65.6% to S$2.0m.

• AI server growth and initial Nvidia- and IEIT-related production provided a counterweight, with segment revenue rising to S$43.2m from S$35.6m.

Financial highlights

• FY25 revenue was S$209.9m versus S$238.0m in FY24, down 11.8%; 2H25 revenue was S$107.4m, down 7.8% YoY.

• Gross profit declined 21.6% to S$28.6m; gross margin was 13.6%, down from 15.3% in FY24.

• Net profit attributable to owners was S$2.0m versus S$5.8m in FY24; 2H25 profit was S$1.6m versus S$2.6m.

• Excluding S$1.6m of one-off stock obsolescence, doubtful debt and investment-property fair-value items, FY25 net profit would have been S$3.6m versus S$11.8m in FY24.

Outlook and guidance

• FY26 capex will focus on high-end precision equipment and production capacity to meet anticipated AI server demand.

• Longer-term GPU server prospects are supported by AI, data-centre and high-performance-computing demand; an expanded product pipeline is expected to contribute in the coming year.

• A 15,772 sqm Rayong factory extension is under construction, with operations expected in 2Q26; it will support OA, automotive, GPU server and liquid-cooling production.

• A U.S. office is planned to strengthen customer support; liquid-cooling system development and potential collaboration with a specialist are underway.