Micro-Mechanics (5DD) H2 2025 earnings summary

Executive summary

• Achieved first full year of profitability at the US subsidiary (MMUS), reversing a prior loss and validating restructuring and improved product mix, with strong free cash flow of S$7.2 million.

• Served over 600 customers globally across five facilities, with a diversified presence in the semiconductor value chain.

• Advanced the Five-Star Factory initiative, focusing on operational excellence, innovation, high-performance teams, and workplace efficiency.

• Net profit rose 54.2% year-over-year to S$12.4 million for FY2025, with revenue up 12.6% to S$65.2 million, driven by growth in consumable tools and Wafer Fabrication Equipment (WFE) segments.

• Final dividend of 3.0 cents per share proposed, totaling 6.0 cents for FY2025 and a payout ratio of 67.3%.

Financial highlights

• Group revenue rose 12.6% year-over-year to S$65.2 million, with EBITDA up 23.8% to S$22.7 million and net profit up 54.2% to S$12.4 million.

• Gross profit increased 18.5% year-over-year to S$32.2 million, with gross margin at 49.4% and EBITDA margin at 34.9%.

• Earnings per share rose to 8.92 cents.

• Cash and bank balances reached S$23.3 million as of June 2025, with no borrowings and net cash from operations at S$18.3 million.

• Free cash flow generation was S$7.2 million.

Outlook and guidance

• Industry outlook remains positive, with global semiconductor revenue forecasted to reach US$728 billion in 2025 and US$800 billion in 2026.

• Strategic focus on advancing the Five-Star Factory initiative, maintaining profitability at the US subsidiary, and disciplined capital management.

• Plans to sustain positive momentum into FY2026, with continued investment in manufacturing capabilities and talent.

• Confident in navigating market volatility and seizing opportunities with a strong balance sheet.