Nanofilm Technologies (MZH) Q2 2026 earnings summary

Executive summary

• Revenue for 1H2026 grew 6.1% year-over-year to S$113.7m, led by Advanced Materials and Nanofabrication, with broad-based growth and a strong pipeline for 2H2026 supported by secured orders.

• Adjusted EBITDA rose 28.1% year-over-year to S$31.3m, with margin improving to 27.5% due to operational efficiency and cost discipline.

• PAT surged 282% year-over-year to S$5.3m, reflecting stronger operating performance and improved gross profit margin to 38.6%.

• Interim dividend increased to 0.60 Singapore cents per share, up from 0.33 cents in 1H2025, supported by a strong cash position of S$89m as of 30 June 2026.

Financial highlights

• Revenue reached S$113.7m in 1H2026, up 6.1% year-over-year; Advanced Materials and Nanofabrication segments grew 9.8% and 11.2% respectively.

• Gross profit margin improved by 6.0 percentage points to 38.6%, driven by productivity, automation, and cost control.

• Adjusted EBITDA increased 28.1% to S$31.3m, with margin expanding to 27.5%.

• PAT rose 282% to S$5.3m, reversing a prior loss.

• Cash and cash equivalents stood at S$89m at period end, supporting growth and higher dividends.

Outlook and guidance

• Revenue momentum expected to accelerate in 2H2026, supported by secured orders and a healthy backlog, especially in Industrial Equipment BU.

• Advanced Materials BU to sustain growth through programme ramp-ups, new product launches, and global expansion.

• Nanofabrication BU to benefit from new strategic projects and expansion into automotive and 3C markets.

• Sydrogen expects significant revenue from secured automotive OEM business and aims for EBITDA positivity by year-end.

• Ongoing macroeconomic volatility, supply chain constraints, and rising component prices remain key challenges.