Micro-Mechanics (Holdings) Ltd. posted a net profit of S$3.7 million for the second quarter ended 31 December 2025, up 25.2 percent year-on-year, driven by strong sales momentum in its consumable tools business.

Earnings per share rose to 2.66 Singapore cents from 2.12 cents a year earlier. The board declared an interim dividend of 3.0 cents per share for 1HFY2026, representing a 60.8 percent payout ratio; payment details were not disclosed.

Group revenue climbed 14.5 percent YoY to S$18.7 million. Consumable tools sales advanced 17.0 percent YoY to S$14.9 million, marking a 14-quarter high, while the wafer-fabrication equipment (WFE) segment grew 5.8 percent to S$3.8 million. Gross profit margin widened to 51.1 percent from 47.5 percent, supported by process improvements and closer customer engagement.

The company said inventory represented 5.3 percent of annualised sales at end-December, up from 4.8 percent at end-June, reflecting efforts to streamline manufacturing despite earlier material delays. Operating cash flow reached S$4.9 million, leaving the group with S$27.2 million in cash and no bank borrowings.

Looking ahead, management plans to channel capital towards advanced-packaging products and WFE manufacturing equipment. Capital expenditure was S$0.8 million in 1HFY2026, with about S$2.3 million budgeted for the second half. Key initiatives include expanding customer support teams in Taiwan and Arizona, installing new high-precision machinery at the US plant in 1QFY2027, and rolling out physics-based programming to lift material-removal rates by up to 30 percent in 2HFY2026.

Chief Executive Officer Kyle Borch said the quarterly gains reflect progress under the company’s “Five-Star Factory” programme. He indicated that Micro-Mechanics will continue to refine processes, invest in talent and allocate capital prudently to sustain earnings quality amid shifting trade dynamics and broader macroeconomic uncertainties.