Micro-Mechanics boosts 2QFY2026 net profit 25% to S$3.7m on 15% revenue growth and fatter margins
Summary:
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Group revenue rose 14.5% year-on-year to S$18.7 million in 2QFY2026, led by a 17.0% jump in consumable tools sales to S$14.9 million and 5.8% growth in WFE segment revenue to S$3.8 million.
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Gross margin expanded 3.6 percentage points to 51.1%, lifting net profit 25.2% to S$3.7 million and net margin to 19.8% for the quarter.
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The balance sheet remains debt-free with cash and bank balances of S$27.2 million and positive operating cash flow of S$4.9 million in 2QFY2026, underpinning disciplined capex and potential buy-backs.
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An interim dividend of 3.0 cents per share for 1HFY2026 has been declared, implying a 60.8% payout ratio and more than 700% cumulative cash return since the 2003 IPO for long-term holders (ex-share-price gains).
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Management continues to execute its “Five-Star Factory” and “Next Generation Supplier” strategies, investing in talent, advanced manufacturing, new elastomer materials and WFE machining technologies to support longer-term growth.