UMS Integration (558) Q2 2025 earnings summary

Executive summary

• Revenue for 1H2025 rose 14% year-over-year to S$125.0 million, driven by a 17% increase in semiconductor sales and a 2% rise in aerospace, while the 'Others' segment declined 9%.

• Net profit for 1H2025 increased 6% to S$20.6 million, with gross material margin improving to 55.1% from 53.3% in 1H2024.

• Quarterly net attributable profit rose 10% to S$10.3 million, with sales up 20% to S$67.3 million in 2QFY2025.

• The group maintained a healthy financial position despite higher expenses, increased capex, and a foreign exchange loss.

• Successful secondary listing in Bursa Malaysia, with market capitalization rising over 50% to S$1.1 billion.

Financial highlights

• 2Q2025 revenue grew 20% year-over-year to S$67.3 million, with semiconductor segment up 27%.

• Net profit for 2Q2025 rose 11% to S$10.5 million; pre-tax profit up 14% to S$12.0 million.

• Gross material margin for 2Q2025 improved to 54.3% from 53.5% in 2Q2024; 1H2025 margin rose to 55.1% from 53.3%.

• Cash and cash equivalents decreased to S$59.1 million as at 30 June 2025 from S$79.9 million at end-2024, mainly due to capex and dividend payments.

• Free cash flow for 1H2025 was negative S$6.6 million due to increased capex of S$22.9 million.

Outlook and guidance

• Revenue and profits are expected to remain strong, supported by robust semiconductor industry recovery, AI-driven chip sector rebound, and new product introductions, especially in Malaysia.

• The group expects to remain profitable in FY2025, with continued investment in production capabilities.

• Interim dividend of 1.0 cent per share declared, totaling 2 cents per share for 1HFY2025, payable on 28 October 2025.

• Aviation sector projected to hit record revenues in 2025, supporting segment growth.