Micro-Mechanics (5DD) Q3 2026 earnings summary

Executive summary

• Revenue for 9MFY2026 rose 11.2% year-over-year to S$53.9 million, with 3QFY2026 revenue up 16.2% to S$18.6 million, driven by sustained demand in consumable tools and recovery in WFE segment.

• EBITDA for 9MFY2026 increased 15.5% year-over-year to S$19.2 million, with EBITDA margin at 35.7%.

• Net profit for 9MFY2026 rose 15.5% year-over-year to S$10.6 million, with 3QFY2026 net profit up 18.8% to S$3.8 million and ROE at 26.3%.

• Gross profit margin improved to 51.6% in 3QFY2026, reflecting operational efficiencies and enhanced customer engagement.

• Maintained a strong balance sheet with S$25.7 million in cash and no borrowings as of 31 March 2026.

Financial highlights

• Gross profit margin expanded to 51.6% in 3QFY2026.

• Operating cash flow for 9MFY2026 was S$12.7 million, supporting ongoing investments.

• Cash and bank balances increased to S$25.7 million as of 31 March 2026.

• Dividend payout ratio for 1HFY2026 was 60.8%, with cumulative dividends per share since listing at 137.9 cents.

• Earnings per share for 9MFY2026 was 7.65 cents, up 15.4% year-over-year.

Outlook and guidance

• Industry outlook remains positive, with global semiconductor sales forecasted to reach US$975 billion in 2026, up 22.5% from 2025.

• Strategic focus on advancing the Five-Star Factory initiative, supporting growth in Taiwan and Arizona, and investing in advanced packaging and WFE capabilities.

• Capital expenditure of S$2.0 million expected in 2HFY2026, allocated to capability and capacity expansion.

• The Group is monitoring geopolitical risks and supply chain disruptions but expects continued strong demand.