UMS Integration Q2 profit up 89% buoyed by AI ‘super cycle’, aviation boom

[SINGAPORE] Semiconductor company UMS Integration (UMS) posted an 89 per cent jump in its net profit to S$19.4 million for the second quarter of FY2026 ended Jun 30, 2026. Revenue for the three months was up 29 per cent to S$87.1 million.

Commenting on the results, UMS CEO Andy Luong said: “The group delivered a stellar performance in Q2 2026, with both our key semiconductor and aerospace businesses delivering outstanding results on the back of the strong artificial intelligence ‘super-cycle’ and sustained aviation boom worldwide.”

For the half-year ended Jun 30, the group posted a 66 per cent increase in net profit to S$33.4 million compared to the year-ago period.

In a bourse filing on Thursday (Aug 13), UMS reported that revenue had increased 25 per cent to S$156.5 million across the same time frame.

On a per share basis, earnings increased to S$0.0376 from S$0.0283 in the year-ago period.

The group declared a second interim dividend of S$0.01 per share, for a total dividend of S$0.02 per share for the half.

The mainboard-listed manufacturer of precision components attributed this to higher sales and profits from its two core business sectors, semiconductor and aerospace.

For the six months, revenue from the semiconductor segment grew 25 per cent to S$134.5 million, while the aerospace division recorded a 37 per cent increase in sales to S$15.8 million, compared to the prior-year period.

For the quarter ended Jun 30, 2026, profit was up 90 per cent to S$19.8 million compared to the year-ago period, while revenue was up 29 per cent to S$87.1 million, largely for the same reasons.

Geographically, UMS reported increased revenue across most of its markets, with Singapore up 18 per cent to S$92.7 million, Malaysia up 50 per cent to S$26 million, and South Korea up 317 per cent to S$9.9 million.

Rosy forecast ahead

UMS sees improved performance ahead. “We are optimistic of continued robust growth… as our current level of performance has yet to reflect the full contribution from several new manufacturing services that we are setting up and progressing through customer qualification,” said Luong.

“Our key customers have also given strong forecasts of equipment demand for several years ahead,” he added.

The company’s major customers have predicted “robust demand” with year-on-year growth expected for 2026 and 2027, with one key customer saying that the semiconductor industry is experiencing its strongest period ever as artificial intelligence is driving unprecedented computing demand and long-term growth.

In the aerospace sector, air travel demand remains strong despite the Middle East crisis, with a continued backlog for major aircraft manufacturers Airbus and Boeing.

“With our strong financial standing and new production facilities in Malaysia and Vietnam, we are well equipped to support our customers’ growth, fuelled by demand for leading-edge foundry logic, memory and advanced packaging technologies tied to AI infrastructure,” said Luong.

Shares of the counter ended Thursday trading up 5.1 per cent or S$0.13 to S$2.70.