Frencken Group (E28) H1 2026 earnings summary

Executive summary

• Revenue for 1H26 was S$427.8 million, nearly flat year-over-year, with 2Q26 revenue up 4.7% from 2Q25, driven by Mechatronics and APS divisions.

• Gross profit rose 5.8% to S$64.4 million, with gross margin improving to 15.0% from 14.1% in 1H25.

• Net profit attributable to equity holders was S$19.3 million, down 3.4% year-over-year, with EPS at 4.50 cents.

• Cash and cash equivalents decreased to S$123.0 million, and net cash position was S$68.8 million as of 30 June 2026.

Financial highlights

• Revenue: S$427.8 million for 1H26, down 0.8% year-over-year.

• Gross profit: S$64.4 million, up 5.8% year-over-year; gross margin at 15.0%.

• Profit before tax: S$25.0 million, up 1.1% year-over-year.

• Net profit: S$19.6 million, down 1.7% year-over-year.

• EPS: 4.50 cents (basic), compared to 4.67 cents in 1H25.

• Net asset value per share: S$1.13 as of 30 June 2026.

Outlook and guidance

• Revenue and profit for FY2026 are expected to be higher than FY2025, barring adverse external changes.

• Mechatronics Asia and Europe divisions anticipate continued growth, especially in the semiconductor segment.

• APS Division expects higher automotive segment sales and is exploring new growth catalysts.

• No interim dividend declared; annual dividend to be considered with full-year results.