Micro-Mechanics (Holdings) Ltd. reported net profit of 15.9 million Singapore dollars for the year ended Jun 30, 2026, a 28.3% year-on-year increase, as higher sales of consumable tools and improved cost efficiency lifted margins.
Earnings per share rose to 11.44 Singapore cents from 8.92 cents a year earlier. The board has proposed a final dividend of 3.0 Singapore cents per share, bringing the full-year payout to 6.0 cents and reflecting a dividend-payout ratio of 52.4%.
Group revenue grew 15.8% YoY to S$75.5 million. The consumable-tools segment contributed S$60.4 million, up 19.8% YoY, accounting for roughly four-fifths of total sales. Revenue from wafer-fabrication-equipment parts, to be renamed “build-to-print precision components” from FY2027, inched 2.3% higher to S$15.1 million. Gross profit climbed 20.8% to S$38.9 million, lifting the gross margin to 51.6% from 49.4% on operating leverage, new-product introductions and process enhancements. EBITDA expanded 21.5% to S$27.6 million, yielding a margin of 36.6%.
The company noted that WFE demand remained subdued relative to the consumables business, while inventory increased to S$4.9 million, or 6.5% of sales, as the group prepared for anticipated growth.
Looking ahead, Micro-Mechanics has launched a five-year strategy aimed at doubling revenue to at least S$150 million by FY2031, while keeping the gross margin above 50% and overheads below 20% of revenue. Key initiatives include expanding manufacturing capacity in China, Malaysia and Taiwan, investing in next-generation machining equipment, and enhancing data-driven, cyber-secure operations under its Five-Star Factory programme. Capital expenditure is projected to rise to about S$12 million in FY2027 from S$3.8 million in FY2026 to support these plans.
Chief Executive Officer Kyle Borch said the FY2026 performance reflected the success of the Five-Star Factory initiative, citing stronger customer engagement and operational discipline. He added that greater geographic localisation and technology upgrades should position the group as a “next-generation supplier” capable of meeting the semiconductor industry’s escalating precision and trace-metal requirements amid a shift toward regionally diversified supply chains.