UMS Integration (558) Q2 2026 earnings summary

Executive summary

• Revenue for 1H2026 rose 25% year-over-year to S$156.5 million, driven by strong growth in Semiconductor (+25%) and Aerospace (+37%) segments.

• Net profit for 1H2026 surged 66% year-over-year to S$33.4 million, with net profit attributable to shareholders up 66%.

• 2Q2026 net profit jumped 90% year-over-year to S$19.8 million on revenue of S$87.1 million, up 29% YoY.

• Declared a second interim dividend of 1.0 cent per share, totaling 2 cents per share for 1H2026.

• Strong performance driven by semiconductor “super-cycle” and sustained aviation boom.

Financial highlights

• 2Q2026 revenue increased 29% year-over-year to S$87.1 million; net profit jumped 90% to S$19.8 million.

• Gross material margin for 1H2026 was 53.5%; 2Q2026 margin stable at 54.2%.

• Profit before tax for 1H2026 rose 62% to S$38.1 million; 2Q2026 profit before tax up 86% to S$22.3 million.

• Free cash flow for 1H2026 was S$21.9 million, with 2Q2026 free cash flow at S$30.7 million.

• Cash and bank balances stood at S$38.6 million as of 30 June 2026, down from S$43.1 million at year-end 2025.

Outlook and guidance

• Management expects continued robust growth, supported by strong forecasts from key customers and industry upcycle driven by AI and advanced semiconductor demand.

• Industry forecasts project global semiconductor equipment sales to rise 23.2% in 2026 and continued growth through 2028.

• The Group is expanding manufacturing capacity, including Penang and a proposed investment in Vietnam, to address tight supply and labor constraints.

• Aerospace outlook remains positive, with global air travel and aircraft demand projected to grow steadily.

• Expects to remain profitable in FY2026 barring unforeseen circumstances.