UMS Integration (558) Q1 2025 earnings summary

Executive summary

• Net attributable profit reached S$9.8 million in 1QFY2025, with revenue up 7% year-over-year to S$57.7 million.

• Free cash flow of S$1.1 million generated; net cash position increased to S$81.4 million as of March 31, 2025.

• Tax-exempt dividend of 1 cent declared for shareholders in 1QFY2025.

• Group remains well-positioned for growth amid anticipated global fab equipment spending increases.

Financial highlights

• Gross material margin improved to 56% from 53% in 1QFY2024, driven by higher-margin semiconductor component sales.

• Net profit stable at S$9.8 million; adjusted net profit at S$10.1 million, up 1% year-over-year.

• Personnel costs rose 6% due to headcount and salary inflation; depreciation up 36% from new equipment.

• Foreign exchange loss of over S$1 million, compared to a gain of S$1.4 million in 1QFY2024.

• Income tax expense declined 20%; S$0.7 million gain from disposal of fixed assets.

Outlook and guidance

• Expects double-digit increase in IS shipments in 2QFY2025 and accelerated component shipments for new key customer.

• Semiconductor industry remains tariff-exempt; global fab equipment spending projected to rise 2% in 2025 and 18% in 2026.

• Aerospace business to benefit from global air travel boom, though new US tariffs could pose risks.

• Group expects to remain profitable for FY2025 and will leverage strong balance sheet to navigate volatility.