UMS Integration earnings up 1% y-o-y to $10.5 mil for 3QFY2025; proposes 1-for-4 bonus issue and third interim dividend

UMS Integration has reported earnings of $10.5 million for the 3QFY2025 ended Sept 30, up 1% y-o-y. For the 9MFY2025 period, earnings grew 4% y-o-y to $30.5 million.

UMS Integration’s revenue for 3QFY2025 and 9MFY2025 came in 9% y-o-y lower and 5% y-o-y higher at $59.3 million and $184.3 million respectively.

The group reported higher sales and profits despite geopolitical tensions and unprecedented market challenges triggered by steep US trade tariffs since the start of the year.

Revenue for the third quarter declined as sales in both the semiconductor segment and aerospace segment softened by 8% and 16% respectively. However, revenue in others rose by
5%.

The revenue decline in the semiconductor segment was caused mainly by a 24% y-o-y lower semiconductor integrated system sales during the period under review, but revenue from component sales increased 6% y-o-y during the same period.

Geographically, the group’s key markets delivered a mixed performance in 3QFY2025. Malaysia, Taiwan and others recorded higher sales while the US and Singapore posted lower sales.

See also: FLCT reports 2HFY2025 DPU of 2.95 cents, 11.1% lower y-o-y

Revenue in Singapore fell 21% y-o-y in 3QFY2025 mainly due to lower overall semiconductor sales while revenue in the US plunged 33% on the back of lower semiconductor component sales.

Sales in Malaysia surged 71% y-o-y as the group commenced business with its new major customer while revenue in others jumped 99% as shipments were made to the new major customer’s plant in Korea.

On the 9MFY2025 basis, semiconductor sales rose 7% y-o-y on the back of higher component sales, while revenue from aerospace and others dipped 5% and 6% respectively. All of the markets except Malaysia and others reported lower sales.

See also: OCBC reports steady 3QFY2025 net profit of $1.98 bil from higher non-interest income and lower allowances

UMS registered $1.7 million (vs $15.9 million in 3QFY2024) positive net cash from operating activities and negative S$10.8 million (vs positive $7.9 million in 3QFY2024) free cash flow in 3QFY2025.

The lower net cash from operating activities was mainly attributed to higher inventories. The group’s continued investment in its new Penang plant also reduced its free cash flow in the quarter under review.

UMS Integration has proposed a 1-for-4 bonus issue and third interim dividend of 1 cent per share, attributable to a stronger performance for the first nine months of this year.

Shares in UMS closed 3 cents lower or 1.948% down at $1.51 on Nov 7.