Micro-Mechanics (5DD) Q1 2027 earnings summary

Executive summary

• 1QFY2027 revenue reached a record S$24.2m, up 45.0% YoY; net profit rose 102.8% to a record S$6.4m.

• Gross margin reached a 20-quarter high of 55.0%; EBITDA rose 64.8% to S$9.8m, with a 40.4% margin.

Financial highlights

• Gross profit rose 55.0% YoY to S$13.3m; operating profit increased 87.7% to S$8.4m.

• Profit before tax rose 88.4% to S$8.3m; EPS was 4.62 cents, versus 2.27 cents in 1QFY2026.

• Net cash from operations was S$4.6m; cash and bank balances were S$33.3m at 30 September 2026, with no bank borrowings.

• Administrative, distribution and other operating expenses, net of other income, fell to 20.7% of revenue from 25.1%.

Outlook and guidance

• Five-year strategy targets FY2031 revenue of at least S$150m, gross margin above 50% and overhead costs below 20% of revenue.

• FY2027 capex is expected to total S$12.0m, primarily for footprint expansion and next-generation equipment and processes; S$908k was invested in 1Q.

• Growth priorities include expanding in China and Malaysia, strengthening physical presence in Taiwan, improving lead times and on-time delivery, and investing through the industry cycle.