Nanofilm Technologies 1H2025 Results: 30% Revenue Growth, S$95m Cash Balance, Interim Dividend of 0.33₵ per Share Announced 6

Nanofilm Technologies International 1H2025 Financial Results Analysis

Nanofilm Technologies International has announced its results for the first half of 2025, showing a marked improvement in financial performance across all business units and a return to profitability. The following analysis highlights key financial metrics, performance trends, and strategic developments outlined in the company’s official report.

Key Financial Metrics and Performance Comparison

Metric	1H2025	2H2024	1H2024	YoY Change	QoQ Change
Revenue (S\$ million)	107.2	82.6	82.6	+29.6%	+29.6%
Adjusted EBITDA (S\$ million)	24.4	35.1	16.7	+46.1%	-30.5%
Adjusted EBITDA Margin	22.8%	28.9%	20.2%	+2.6pp	-6.1pp
PATMI (S\$ million)	1.6	11.5	-3.7	Reversal from loss	-86.1%
PATMI Margin	1.5%	9.4%	-4.5%	+6.0pp	-7.9pp
EPS (S\$ per share)	0.33¢	N/A	N/A	N/A	N/A
Interim Dividend (S\$ per share)	0.33¢	N/A	N/A	N/A	N/A
Total Cash Balance (S\$ million)	95	110	N/A	N/A	-13.6%

Historical Performance Trends

Revenue increased 29.6% YoY to S\$107.2 million, with every business unit (BU) posting growth. The Advanced Materials Business Unit (AMBU) and Industrial Equipment Business Unit (IEBU) led the topline expansion.
Adjusted EBITDA grew 46% YoY, with margin improving to 22.8%, attributed to stronger revenue contributions and active cost management.
The company reversed its prior year net loss of S\$3.7 million to a positive PATMI of S\$1.6 million for the period.
Gross profit margin slightly declined to 32.6% (from 33.5%) due to higher costs related to new product introductions (NPI) and ramp-up for new projects.
Operating expenses remained under control, with administrative and sales costs streamlined versus the previous half-year.

Exceptional Earnings and Expenses

Higher manpower costs were incurred to support NPI projects and the ramp-up of new business, particularly in Advanced Materials – Consumer.
R&D and engineering spending (including capitalisation) increased to S\$17.7 million, reflecting commercialisation prospects for projects under development.

Chairman’s Statement

“Back to Profitability with Strategic Progress Across All BUs. Growth-Led Recovery – Rebuilding Strength, Regaining Momentum.”

The Chairman’s tone is distinctly positive, focusing on recovery, operational strength, and momentum. The statement is supported by financial data showing a broad-based turnaround.

Dividends

An interim dividend of 0.33¢ per ordinary share was declared, reflecting confidence in the company’s cash generation and profitability.

Strategic Developments & Corporate Actions

Operations commenced at new sites in Vietnam and India, expanding production capabilities and diversifying beyond China.
The acquisition of Europ Coating Group in Germany added to coating capabilities and strengthened the Group’s presence in European industrial markets.
No mention of divestments, IPOs, share buybacks, or asset sales in the report.

Business Outlook

Resilience & Diversification: The company has proactively de-risked geopolitical exposures, invested in infrastructure, and diversified production bases, positioning itself to withstand global uncertainties.
Growth Prospects: Sustained growth is expected across core markets in Southeast Asia, China, and Europe, with deeper traction in consumer, automotive, and industrial applications.
Sector Focus: Continued engagement in high-growth sectors like semiconductors and emerging European segments is a priority.
Cost Discipline: While recent expansions have increased costs, management asserts that costs are now controlled and no further significant infrastructure investments are anticipated.

Events Impacting Performance

No disclosure of natural disasters, legal disputes, tax changes, or other extraordinary events.
The macroeconomic environment is described as uncertain, but the company’s diversified model offers resilience.

Comparison to Peers

While many industry participants faced declines or only modest growth, Nanofilm’s revenue growth and return to profitability stand out for the period.

Conclusion & Investment Recommendation

Summary:
Nanofilm Technologies International delivered a strong financial turnaround in 1H2025, marked by robust revenue growth, a return to profitability, and positive cash generation. Strategic diversification and operational expansion underpin the company’s resilience amid global uncertainties. Cost discipline and focused R&D investments provide further support to the growth outlook, while the Chairman’s statement and dividend declaration reflect optimism and confidence in future performance.

Investor Recommendations

If holding the stock: Consider maintaining your position, as the company has demonstrated a successful recovery, strong growth momentum, and prudent financial management. The outlook is positive, supported by both operational execution and strategic expansion.
If not holding the stock: Consider initiating a position, particularly if seeking exposure to resilient, high-growth industrial technology with diversified global operations. The return to profitability and strategic initiatives suggest potential for further upside, though investors should remain aware of broader macroeconomic risks.

Disclaimer: This analysis is based strictly on the information disclosed in Nanofilm Technologies International’s 1H2025 results report. It does not constitute financial advice, and investors should conduct their own due diligence and consider their risk tolerance before making investment decisions.