The improved revenue was driven by growth in both the group’s consumable tools and wafer fabrication equipment (WFE) segments. In FY2025, sales from Micro Mechanics’ consumable tools increased by 5.7% y-o-y to $50.4 million, while sales from the WFE segment surged by 45.5% y-o-y to $14.8 million, due to the group seeing “orders rebound” following efforts to develop a “more compelling, competitive and higher value” product mix.
With this, the group has proposed a final dividend of 3.0 cents per share, bringing the total dividend for FY2025 to 6.0 cents per share.
On a 4QFY2025 basis, earnings surged 52.9% y-o-y to $3.18 million from the 4QFY2024’s $2.08 million. Revenue grew 12.0% y-o-y to $16.7 million in the 4QFY2025, from $14.9 million in the same period a year ago.
As at end-June 2025, total assets stood at $60.8 million and the group generated net cash of $18.3 million from operating activities.
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After deducting net cash used in investing activities of $1.2 million and net cash used in financing activities of $9.9 million, which was mainly for the payment of dividends in the FY2024 and 1HFY2025, the group ended FY2025 with $23.3 million in cash and no bank borrowings.
To support sustained business and earnings growth, Micro Mechanics is investing strategically in capital expenditure to enhance its manufacturing capabilities and productivity. These investments include equipment to support greater precision work, automation and enhanced productivity.
Moving forward, the group will continue to focus on its ‘Five-Star Factory initiative’, which aims to drive excellence across five key areas of the group’s business. This covers people, customer focus, operations, innovation and workplace safety and efficiency.
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Micro Mechanics will also continue to “closely engage customers” to identify new opportunities to support higher-value problems across the value chain. The group also continues to focus and build its capabilities in leading-edge technology applications, including the development of elastomer pick up tools used to package advanced chips like high bandwidth memory.
The group has minimised inventory overstocking with inventory of $3.1 million as at the end of June, representing 4.8% of annualised sales. Inventory written off for FY2025 totalled $166,000, compared to $214,000 in the FY2024.
In the 4QFY2025, Micro Mechanics continued to make good improvements in its elastomer manufacturing process, which represents about 29.6% of the group’s revenue, in terms of both cost, lead time and yield.
Internally, the group’s board of directors appointed Kyle Borch as chief executive officer (CEO) with effect from July 1. Borch succeeds Christopher Borch, who will continue in his capacity as executive chairman.
“As we head into FY2026, we are more committed than ever to pursuing excellence in all that we do, so that we can help our customers succeed with Five-Star solutions, contribute to the advancement of the semiconductor industry, and ultimately continue to deliver long-term sustainable value for our shareholders,” says CEO Borch.
As at 2.15pm, shares in Micro Mechanics are trading seven cents lower or 3.76% down at $1.79.
