UMS Integration Limited posted a 90% year-on-year surge in net profit to S$19.8 million for the quarter ended 30 June 2026, driven by robust contributions from its semiconductor and aerospace divisions amid an AI-fuelled chip up-cycle and sustained recovery in global air travel.
Group revenue rose 29% YoY to S$87.1 million, lifting earnings per share to 2.22 Singapore cents from 1.44 cents a year earlier. The board declared a tax-exempt second interim dividend of 1.0 cent per share, bringing total dividends for 1HFY2026 to 2.0 cents. Payment details were not disclosed.
Semiconductor sales expanded 28% to S$75.5 million, underpinned by a 19% increase in integrated-system revenue to S$33.5 million and a 37% jump in component revenue to S$42.1 million. Aerospace revenue climbed 59% to S$8.6 million, while the Others segment eased 3% to S$3.0 million. Group profit before tax advanced 86% to S$22.3 million.
By geography, Singapore remained the largest market with sales up 24% to S$53.5 million. Malaysia grew 50% to S$14.0 million, aided by ramp-up for a new semiconductor customer, and Korea revenue multiplied more than fourfold to S$6.4 million. The United States slipped 2% to S$7.1 million, and Taiwan fell 28% to S$3.3 million.
Gross material margin held steady at 54.2% (54.3% a year earlier), while personnel and depreciation expenses increased on higher headcount and equipment additions. A sharp reduction in foreign-exchange losses pared other charges, supporting the profit rebound. Operating cash flow improved to S$36.3 million from S$3.6 million, enabling the repayment of a S$8.3 million short-term loan and leaving the group with S$38.6 million net cash at end-June.
UMS is accelerating capacity expansion to meet tightening supply conditions. Ongoing investments include the enlargement of its Penang facilities and a proposed entry into Vietnam’s precision-engineering sector via a recently signed memorandum of understanding. Several new manufacturing services are progressing through customer qualification, which management expects will bolster future revenue.
Industry indicators remain positive. SEMI projects global semiconductor equipment sales to rise 23.2% in 2026 and continue expanding to US$229.5 billion by 2028, while leading chipmakers signal multi-year capital-expenditure increases. In aerospace, Airbus and Boeing foresee annual passenger-traffic growth of about 4% and record aircraft order backlogs, supporting demand for precision components.
Chief executive Andy Luong attributed the quarter’s performance to heightened orders for advanced semiconductor systems and stronger demand from commercial aviation customers. He said the group is positioning new Malaysian and planned Vietnamese capacities to capture growth linked to leading-edge logic, advanced memory and packaging for AI infrastructure, while supporting aircraft manufacturers amid a prolonged upcycle. Management expects UMS to stay profitable for FY2026 and will pursue disciplined expansion and customer-qualification programmes to underpin long-term shareholder returns.