Micro-Mechanics (5DD) Q3 2025 earnings summary

Executive summary

• Revenue for 9MFY2025 rose 12.9% year-over-year to S$48.5 million, with Q3 FY2025 revenue up 17.3% to S$16.0 million, driven by strong WFE segment growth and operational improvements.

• Net profit for 9MFY2025 increased 54.7% year-over-year to S$9.2 million, with Q3 net profit surging 72.6% to S$3.2 million; ROE reached 23.7%.

• Gross profit margin improved to 50.5% in Q3 FY2025 from 46.4% a year ago.

• The Group remains debt-free, with cash and cash equivalents of S$19.2 million as of 31 March 2025.

• Leadership transition announced: Deputy CEO Kyle Borch to become CEO effective 1 July 2025, ensuring continuity.

Financial highlights

• Q3 revenue: S$16.0 million (up 17.3% YoY); 9M revenue: S$48.5 million (up 12.9% YoY).

• Q3 net profit: S$3.2 million (up 72.6% YoY); 9M net profit: S$9.2 million (up 54.7% YoY).

• Gross profit for 9M: S$24.0 million (up 18.6% YoY); Q3 gross profit: S$8.1 million (up 27.5% YoY).

• Earnings per share for 9M: 6.63 cents (up 54.5% YoY); Q3 EPS: 2.29 cents.

• Net asset value per share: 33.83 cents as of 31 March 2025.

Outlook and guidance

• Sector outlook remains positive, with global semiconductor revenue forecasted to reach US$627b by end-2025 and industry sales expected to grow 19% in 2025.

• No direct impact from recent retaliatory tariffs, but vigilance maintained for potential indirect effects.

• Focus on sustaining profitability, cost reduction, product mix optimization, and operational excellence.

• Continued disciplined capital management, steady dividends, and investment in innovation.