For 1Q26, the Group reported revenue of S$202.0 million and gross profit margin of 14.4%. Net profit
attributable to equity holders of the Company (“PATMI”) for 1Q26 totalled S$8.0 million which included a
foreign exchange loss of S$1.1 million.
REVENUE ANALYSIS
The Mechatronics Division’s revenue decreased 7.7% yoy to S$180.4 million in 1Q26. This was due
mainly to lower revenue contributions from the semiconductor and analytical life sciences segments of
Mechatronics Europe. The revenue performance of this division’s main business segments in 1Q26 is
provided below:
− Semiconductor segment’s revenue eased 7.0% yoy to S$98.8 million. Mechatronics Asia registered
robust sales growth from its key front-end and back-end semiconductor equipment customers during
1Q26. This partially cushioned against the decrease in sales from Mechatronics Europe, which saw
a moderation in orders of an advanced module for EUV systems from its peak level in 2025.
The Group will maintain a diverse portfolio that provides exposure to technology businesses of varying
growth and stability profiles for better resilience.
Its strategic focus in the next phase is to capitalise on current tailwinds and emerging opportunities for
core businesses as well as build new growth engines, through organic and/or inorganic avenues.
To support its growth plans to reach and go beyond the S$1 billion revenue mark, Frencken has
embarked on an organisational alignment initiative to build a scalable and efficient infrastructure. Thismulti-phase initiative will see a centralisation of horizontal functions to raise productivity, improve
resource deployment and extract cost efficiencies in the future.
• Core businesses’ outlook / New business pillars
Frencken is well-positioned to ride the current semiconductor upcycle as it serves market-leading
OEMs across a broad spectrum of chip manufacturing processes from wafer fabrication to assembly
and test.
Mechatronics Asia’s growth in 1Q26 was driven by sustained demand from key front-end and back-
end semiconductor equipment customers. It currently sees a positive growth trajectory supported by
active semiconductor programs in volume production, multiple First Articles and new projects as the
division continues to build on future pipeline and wallet share.
Mechatronics Europe is proactively aligning its capacity and resources as engagements with a key
semiconductor customer reaffirm a recovery in order flow from the second half of FY2026.
The medical segment is poised for stable growth as the Group continues to support its customers in
Europe. It also plans to explore opportunities with other prospective customers from the healthcare
equipment sector in Asia.
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