UMS Integration (558) Q1 2025 earnings summary

Executive summary

• Revenue rose 7% year-over-year to S$57.7 million, driven by growth in Semiconductor and Aerospace segments.

• Net profit attributable to owners was stable at S$9.8 million, with overall net profit up 1% to S$10.1 million.

• Gross margin improved to 56% from 53% due to a favorable product mix and higher-margin semiconductor component sales.

• Cash and bank balances increased to S$81.9 million as of 31 March 2025; free cash flow was S$1.1 million.

• Interim tax-exempt dividend of 1.0 cent per share declared, payable 24 July 2025.

Financial highlights

• Semiconductor revenue up 6% and Aerospace up 22% year-over-year; Others segment declined 12%.

• Malaysia revenue surged 287% year-over-year to S$9.4 million, offsetting declines in Singapore, Taiwan, and Others.

• Net cash from operating activities was S$11.4 million; free cash flow S$1.1 million.

• Depreciation expense increased 36% due to new production equipment.

• Personnel costs rose 6% from higher headcount and salary inflation.

Outlook and guidance

• IS shipments expected to register double-digit growth in 2QFY2025; component shipments for new key customer anticipated to accelerate.

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

• 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.