CEO's Message
To our valued stakeholders,
FY2025 was a year of change with the global semiconductor industry experiencing new technological breakthroughs while heightened geopolitical tensions reordered supply chains worldwide. This presented the opportunity for us to demonstrate resilience as we focused on enabling our customers’ success by executing our Five-Star Factory initiative and practicing disciplined capital management and good governance. We also embraced change within the Group with a planned leadership transition into my role as CEO, supported by a trusted leadership team to progress our strategic priorities.
Our efforts laid the foundation for a strong performance for FY2025 and our continued growth. Revenue increased 12.6% year-on-year (“yoy”) to S$65.2 million, with yoy sales growth in our consumable tools and wafer fabrication equipment (“WFE”) segments. Our WFE segment, driven primarily by our USA subsidiary (“MMUS”), achieved a full year profit of S$1.2 million during the year, marking a strong turnaround from the S$2.2 million loss reported in FY2024. This recovery contributed meaningfully to the Group’s overall results, with EBITDA rising 23.8% yoy to S$22.7 million. The Group’s EBITDA margin also improved from 31.7% to 34.9%, while net profit grew 54.2% yoy to reach S$12.4 million for the financial year – reflecting enhanced operational efficiency and disciplined execution across our businesses.
According to the World Semiconductor Trade Statistics ("WSTS"), the global semiconductor market is expected to grow 9.9% yoy to US$800 billion in 2026. Looking ahead, we remain cautiously optimistic amid ongoing macroeconomic and geopolitical uncertainties. Our focus continues to be addressing our customers’ needs regardless of externalities as this is key to creating sustainable long-term value for all our stakeholders. This customer-centric focus is underpinned by three strategic priorities:
Advancing the Five-Star Factory initiative
The Five-Star Factory initiative strengthens excellence across five key pillars to support our ambition of becoming a Next Generation Supplier, capable of meeting increasingly complex manufacturing requirements. Launched in FY2024, this ongoing initiative continues to enhance our ability to meet our customers’ needs while sharpening our competitiveness.
As we progress, we remain anchored in two guiding principles. The first is continuing to Pursue Excellence in Everything We Do, striving to delight our customers with Five-Star solutions that support industry advancement. The second is striving to be the best, rather than the biggest. This means prioritising high-value problems where we can lead the market with innovative solutions, flawless quality, and fast support.
Maintaining profitability at MMUS
We are also pleased to have achieved our first full year of profitability at MMUS, after completing a restructuring plan to recalibrate the plant’s engineering and product focus towards more compelling, competitive and higher-value process-critical parts for the WFE industry.
We aim to continue this positive momentum, supported by our focus on enhancing Operational Excellence through optimised costs and improved efficiencies. As customers navigate ongoing tariff uncertainties and look at localising their supply chains, our decentralised structure and expertise in semiconductor solutions uniquely position us to seize opportunities across the semiconductor value chain.
Prioritising disciplined capital management and good governance
Since our founding in 1983, we have consistently prioritised disciplined capital management and good governance to build our operational resilience and deliver long-term sustainable value for our stakeholders. We stayed cash flow positive in FY2025 despite a volatile operating environment, generating S$18.3 million in net cash from our operations. After deducting S$1.2 million of net cash used in investing activities and S$9.9 million of net cash used in financing activities, we ended FY2025 with S$23.3 million in cash and no bank borrowings.
This strong balance sheet provides us with the flexibility to manage any potential risks and invest in our long-term growth. To that end, we are investing in precision and automation equipment to enhance our manufacturing capabilities and productivity for FY2026.
As we look ahead, I am excited to continue the Journey to Excellence that started in 1983, working alongside the People Who Make Everything Happen. I would like to express my deepest appreciation to our Board of Directors for their guidance and unwavering commitment to advancing our stakeholders’ interests. I wish to extend my sincere gratitude to our founder and outgoing CEO, Mr. Christopher Reid Borch, who has laid the foundation for the success we build upon today, and who will continue to provide valuable guidance as Executive Chairman. I am equally grateful to our High Performance Teams for their dedication to excellence. Finally, I thank our valued customers and shareholders for their trust and support in Micro-Mechanics. I am fortunate to serve such an extraordinary group of stakeholders in a dynamic industry, and look forward to the many milestones that we will continue to achieve together.
Onward and upward,
Kyle C. Borch, Chief Executive Officer