Micro-Mechanics (5DD) H2 2026 earnings summary

Executive summary

• Revenue grew 15.8% year-over-year to S$75.5 million, driven by strong demand in the consumable tools and WFE segments.

• EBITDA rose 28.3% year-over-year to S$27.6 million, with EBITDA margin improving to 36.6%.

• Net profit increased to S$15.9 million, with a 28.3% year-over-year rise and a 65.7% increase in 4QFY2026 to S$5.3 million.

• Gross profit margin reached 52.0% in 4QFY2026 and 51.6% for FY2026, reflecting operating leverage and improved customer engagement.

• Maintained a net cash position with no borrowings and cash balances rising to S$30.1 million.

Financial highlights

• Gross profit increased to S$38.9 million, supported by enhanced manufacturing processes and customer engagement.

• EBITDA margin improved to 38.8% in 4QFY2026 and 36.6% for FY2026.

• Operating cash flow remained strong at S$18.9 million, reflecting healthy working capital cycles.

• Inventory rose to S$4.9 million, representing 6.5% of sales as of 30 June 2026.

• Final dividend of 3.0 cents per share, total payout of 6.0 cents per share for FY2026, with a payout ratio of 52.4%.

Outlook and guidance

• Five-year roadmap targets revenue of at least S$150 million by FY2031, maintaining gross margin above 50% and overhead below 20% of revenue.

• FY2027 capital expenditure expected to increase to S$12–15 million to support growth strategy.

• Plans to expand operations in China, Malaysia, and Taiwan to strengthen local customer support.

• Investment in next-generation equipment and processes to enhance capabilities in process-critical applications.

• Industry outlook remains positive, with global semiconductor sales forecasted to reach US$1.7 trillion in 2026.