JEP Holdings Ltd posted a 7.2 per cent rise in net profit to S$3.4 million for the year ended 31 Dec 2025, buoyed by a sharp rebound in semiconductor demand and tighter cost controls, even as group revenue dipped 5.4 per cent to S$53.8 million year-on-year.

Earnings per share increased 7.3 per cent to 0.812 Singapore cents (FY2024: 0.757 cents). The Catalist-listed precision engineering group did not declare any dividend.

Group profit before tax climbed 13.9 per cent to S$4.2 million, helped by a 25.7 per cent reduction in administrative costs, a 14.6 per cent cut in selling and distribution expenses, and a 16.6 per cent drop in finance charges. Gross margin held steady at 15.8 per cent, while other operating income fell by one-third to S$1.4 million owing to lower interest income and foreign-exchange losses.

By segment, Precision Machining was the standout, with revenue growing 14.2 per cent to S$39.0 million and pre-tax profit surging 71.0 per cent to S$6.2 million, lifted by an 85.2 per cent jump in semiconductor sales. Aerospace revenue eased 6.6 per cent. Equipment Manufacturing swung to a S$1.5 million loss from a S$0.1 million profit a year earlier as sales fell 30.5 per cent to S$10.2 million amid transition costs linked to a shift towards front-end semiconductor work. Trading & Others remained profitable at S$0.3 million, though revenue slid 43.0 per cent to S$4.6 million.

Geographically, Malaysia delivered a more than 150 per cent sales increase to S$17.9 million, offsetting declines in Singapore (-32.3 per cent to S$16.8 million), China (-67.2 per cent to S$1.9 million) and the United States (-10.3 per cent to S$12.2 million). Net cash stood at S$7.3 million after the company invested S$20.3 million in upgrading its Singapore facilities and fully repaid bank borrowings.

Management said the capital expenditure will expand high-end engineering and machining capabilities, including specialised plastic components for advanced semiconductor packaging. The group will also continue to tap operational synergies with major shareholder UMS Integration to pursue new business opportunities.

Executive chairman and chief executive Andy Luong noted that disciplined cost management helped preserve margins despite softer top-line growth. He added that accelerating adoption of artificial-intelligence applications is expected to underpin demand in both aerospace and semiconductor markets, and expressed confidence that the revamped production base positions JEP to “capture new opportunities” in FY2026, subject to market conditions.