Frencken Group Limited posted net profit attributable to shareholders of 39.1 million Singapore dollars for the 12 months ended 31 December 2025, up 5.4 per cent year-on-year (YoY), lifted mainly by stronger demand from semiconductor customers in Asia.

Earnings per share rose to 9.16 Singapore cents from 8.69 cents a year earlier. The board has proposed a first-and-final tax-exempt dividend of 2.75 Singapore cents per share, compared with 2.61 cents a year ago, payable on 14 May 2026 to shareholders on the register as at 5 May 2026.

Group revenue increased 8.9 per cent YoY to 865.1 million Singapore dollars. The Mechatronics division contributed 778.4 million Singapore dollars, up 10.2 per cent, driven by a 16.7 per cent jump in semiconductor sales to 426.6 million Singapore dollars. Medical revenue grew 5.2 per cent to 129.5 million Singapore dollars, while industrial automation sales surged 48.6 per cent to 43.1 million Singapore dollars. These gains offset an 8.1 per cent decline in analytical life-sciences revenue to 166.6 million Singapore dollars.

The Advanced Plastics Solutions (APS) division recorded revenue of 83.1 million Singapore dollars, 3.0 per cent lower YoY amid softer automotive and consumer-electronics demand. At the pre-tax level, Mechatronics generated earnings of 48.5 million Singapore dollars, whereas APS booked a loss of 1.1 million Singapore dollars.

Group gross profit margin stayed broadly stable at 14.3 per cent versus 14.5 per cent previously. Selling and distribution expenses rose 11.3 per cent to 12.8 million Singapore dollars, and administrative expenses increased 9.7 per cent to 62.3 million Singapore dollars, reflecting higher manpower and software costs. Finance costs fell 21.9 per cent to 5.4 million Singapore dollars following lower borrowings.

Frencken closed the year with net cash of 139.6 million Singapore dollars, after generating 103.5 million Singapore dollars in operating cash flow. Capital expenditure totalled 18.3 million Singapore dollars, while borrowings declined to 22.3 million Singapore dollars. Net asset value stood at S$1.11 per share, up from S$1.02 a year earlier.

Looking ahead, management expects first-half 2026 revenue to be broadly flat against the prior-year period but foresees higher net profit, supported by continued momentum in Asian semiconductor orders. The group is expanding capacity in Malaysia through additional production space and has started construction of a new Singapore facility slated for completion in early 2027. It is also consolidating Malaysian plastics operations and upgrading systems as part of a multi-phase organisational alignment to support future growth.

Segment outlook for 1H26 indicates higher revenue from semiconductor and automotive businesses, lower contributions from analytical life sciences, and steady growth from the medical segment, while industrial automation is projected to be softer following a strong 2025.