Nanofilm Technologies (MZH) H1 2025 earnings summary

Executive summary

• Revenue rose 29.6% year-over-year to S$107.2 million, with growth across all business units led by Advanced Materials and Industrial Equipment.

• PATMI returned to profit at S$1.6 million, reversing a S$3.7 million loss in 1H2024; net profit after tax was S$1.4 million.

• Adjusted EBITDA increased 46.1% to S$24.4 million, reflecting improved operational performance.

Financial highlights

• Gross profit rose 26.4% to S$34.9 million; gross profit margin declined to 32.6% from 33.5% due to product mix and higher costs from new projects.

• Operating cash flow was S$20.1 million; net cash used in investing activities was S$33.9 million.

• Cash and cash equivalents were S$95.1 million at 30 June 2025, down from S$110.2 million at year-end 2024.

• Interim dividend of S$0.0033 per share, or S$2.1 million in total, declared, payable 5 September 2025.

Outlook and guidance

• Consumer demand is expected to become more balanced through 2025 as projects ramp up and NPI projects commence; Industrial growth momentum is expected to continue into 2H2025.

• IEBU expects equipment deliveries and stable after-sales revenue; NFBU anticipates growth from higher programme allocations and new strategic programmes.

• Sydrogen has pilot shipments of air-cooled fuel cell systems underway in China; SydroPEARL electrolyser coating launch strengthens its hydrogen value-chain position.

• FY2025 revenue is expected to be driven by Advanced Materials Consumer, European business growth and new products; capital expenditure remains disciplined.