Frencken H2 profit rises 1.1% to S$19.2 million on higher mechatronics revenue

[SINGAPORE] High-tech manufacturer Frencken on Friday (Feb 27) reported a 1.1 per cent increase in net profit to S$19.2 million for the second half ended Dec 31, 2025, from S$19 million in the previous corresponding period.

Revenue for the period rose 2.9 per cent to S$433.7 million, from S$421.6 million previously.

The increase was driven by higher revenue from the group’s key mechatronics division, as well as its advanced plastics solutions (APS) division, formerly known as IMS.

Revenue for the mechatronics division rose 2.7 per cent to S$389.1 million in H2 FY2025, lifted by growth in the industrial automation, medical, and semiconductor segments.

Specifically, the industrial automation segment saw a 75.8 per cent jump in revenue to S$26.3 million for the half-year, while the medical segment grew 7.2 per cent to S$65.4 million. The semiconductor segment, which accounts for the bulk of the group’s revenue, inched up 1.1 per cent to S$211 million.

These gains helped offset a 12.4 per cent decline in the analytical life sciences segment to S$79.3 million.

Revenue for the APS division increased 2.8 per cent to S$42.5 million in H2 FY2025, compared with S$41.4 million previously. Sales to automotive customers rose 3.2 per cent to S$31 million, while the consumer and industrial electronics segment grew 2.3 per cent to S$8.6 million.

For the full year, Frencken’s net profit rose 5.4 per cent to S$39.1 million, while revenue climbed 8.9 per cent to S$865.1 million.

The group has proposed a first and final tax-exempt dividend of S$0.0275 per share for FY2025, up from S$0.0261 in the year-ago period.

Looking ahead, the group maintained a “cautiously positive” outlook.

“The semiconductor segment shall remain a key business driver for the Group in FY2026,” Frencken said.

It noted that while its mechatronics operations in Asia will continue to ride on the current business upturn, its Europe operations anticipate order flow from a key semiconductor customer to pick up from the latter half of 2026.

The group expects revenue for the first half of 2026 to stay “largely unchanged” compared to H1 FY2025, though it anticipates higher net profit for the same period, barring unforeseen circumstances.

Shares of Frencken rose 6.4 per cent to close S$0.13 higher at S$2.16, before the announcement of the results.