Nanofilm Technologies (MZH) Q2 2025 earnings summary

Executive summary

• Achieved a return to profitability in 1H2025, reversing a prior year loss, with strong revenue growth and strategic progress across all business units.

• Revenue increased 30% year-over-year to S$107.2m, led by Advanced Materials and IEBU segments.

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

• Strategic initiatives included new production sites in Vietnam and India and the acquisition of Europ Coating Group in Germany.

• Gross profit margin declined to 32.6% from 33.5% due to higher costs and product mix changes.

Financial highlights

• Revenue grew 29.6% year-over-year to S$107.2m, with all business units contributing to growth.

• PATMI turned positive at S$1.6m in 1H2025, reversing a S$3.7m loss in 1H2024.

• Gross profit rose 26.4% to S$34.9 million year-over-year.

• Adjusted EBITDA margin improved to 22.8% from 20.2% year-over-year.

• Total cash balance stood at S$95m as of 30 June 2025.

Outlook and guidance

• Continued growth expected in consumer and industrial segments, with project ramp-ups and new customer engagements.

• Industrial Equipment and Sydrogen BUs expected to see improved contributions in 2H2025.

• Company remains resilient amid global uncertainty, with no major new infrastructure investments planned.

• Capital expenditure to remain disciplined, focusing on strategic expansion in South China, Germany, and NTI-NTU Corporate Laboratory.

• FY2025 revenue expected to be driven by Advanced Materials (Consumer), with growth from European business and new product introductions.