Micro-Mechanics (5DD) Q1 2026 earnings summary

Executive summary

• Revenue for 1QFY2026 rose 2.9% year-over-year to S$16.7m, driven by strong consumable tools sales and improved product mix.

• Net profit increased 2.7% year-over-year to S$3.2m, with net profit margin at 18.9%.

• EBITDA reached S$5.9m with a margin of 35.5%.

• Maintained a net cash position with S$27.2m in cash and no borrowings as of 30 Sep 2025.

• Focus on operational excellence, innovation, and decentralised structure to support global customers.

Financial highlights

• Gross profit increased to S$8.6m, with gross margin expanding to 51.5% (+0.8 ppt year-over-year).

• Operating cash flow remained robust at S$4.5m for the quarter.

• Earnings per share increased 2.7% to 2.27 cents.

• Free cash flow for 1QFY2026 was S$3.8m, up from S$2.8m a year ago.

• Inventory at S$3.6m, representing 5.4% of sales, with inventory write-off reduced to S$24k.

Outlook and guidance

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

• Group expects to invest around S$4.0m in capex to enhance production capacity and support localisation.

• The group will review capital expenditure plans on a half-yearly basis to maintain agility.

• Strategic focus on cross-pollinating best practices, innovation, and disciplined capital management.

• Vigilance amid sector-specific tariff threats and rising material costs.