Micro-Mechanics (5DD) H1 2025 earnings summary

Executive summary

• Achieved positive momentum from US subsidiary restructuring, with second consecutive quarter of profitability at MMUS.

• Advanced 'Five-Star Factory' initiative, improving efficiency and operational excellence across the group.

• Increased demand for consumable tools amid global supply chain uncertainties, especially from local customers.

Financial highlights

• Group revenue for 1HFY2025 rose 10.8% year-over-year to S$32.5m; 2QFY2025 revenue up 20.7% year-over-year to S$16.3m.

• Net profit for 1HFY2025 increased 17.2% year-over-year to S$6.0m; EBITDA up 34% to S$11.2m, with margin at 34.4%.

• Cash and bank balances at S$20.2m as of 2QFY2025, with no borrowings; net cash from operations S$9.6m for 1HFY2025.

• Interim dividend of 3.0 cents per share declared for 1HFY2025, with a payout ratio of 69.2%.

Outlook and guidance

• Targeting leadership as a next-generation supplier of high-precision tools and parts for semiconductor manufacturing.

• Focus on sustaining MMUS profitability, cost reduction, and product mix optimization in WFE sector.

• Continuing disciplined capital management, maintaining zero bank borrowings and steady dividends.

• Industry outlook positive, with global semiconductor revenue forecast to reach US$697b by end-2025, up 9.8% from FY2024.