Micro-Mechanics (5DD) Q1 2026 earnings summary

Executive summary

• Revenue for 1QFY2026 rose 2.9% year-over-year to S$16.7 million, driven by a 13-quarter high in consumable tools sales and improved product mix.

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

• Gross profit margin expanded to 51.5%, reflecting improved operating leverage and scale efficiencies.

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

• Continued focus on operational excellence, innovation, and decentralised structure to support global customers and high-performance teams.

Financial highlights

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

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

• Net profit was S$3.2 million, up 2.7% year-over-year, with EPS at 2.27 cents.

• Operating and free cash flow remained robust at S$4.5 million and S$3.8 million, respectively.

• Net asset value per share increased to 37.93 cents as of 30 September 2025.

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, though sector-specific tariff threats and rising material costs pose risks.

• Group expects to invest around S$4.0 million in capex to enhance production capacity, plant, and equipment, focusing on supply chain localisation.

• No dividend declared for 1QFY2026, consistent with usual practice of declaring in 2Q and 4Q.

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

• The group remains agile in resource allocation to stay ahead of industry shifts.