Nanofilm Technologies International FY2025 Results: Robust Recovery, Strong Outlook
Nanofilm Technologies International released its FY2025 results, revealing a strong recovery in financial performance, improved profitability, and an optimistic outlook for FY2026. The company demonstrated resilience and growth across its business units, driven by expansion efforts, operational efficiency, and disciplined cost management.
Key Financial Metrics and Comparisons
| Metric |
FY2025 (2H) |
FY2025 (1H) |
FY2024 (2H) |
YoY Change (2H) |
HoH Change |
| Revenue |
S\$137.4m |
S\$107.2m |
S\$121.6m |
+13% |
+28% |
| Adjusted EBITDA |
S\$35.1m |
S\$27.7m |
S\$29.0m |
+21% |
+26% |
| Net Profit (PAT) |
S\$10.5m |
S\$1.4m |
S\$10.6m |
-1% |
+650% |
| Gross Profit Margin |
38.9% |
32.6% |
37.1% |
+4.9pp |
+6.3pp |
| Final Dividend |
0.87₵/share |
0.33₵/share (interim) |
0.63₵/share |
+38% |
+164% |
| Cash Balance (Year-End) |
S\$85m |
S\$110m (start) |
S\$49m |
+73% |
-23% |
Historical Performance and Trends
Nanofilm Technologies achieved a robust 20% YoY revenue growth to S\$245m for FY2025, with adjusted EBITDA up 21% to S\$62.8m. Net profit surged 58% YoY to S\$11.9m, with a net margin improvement from 3.7% to 4.9%. The company’s gross profit margin rebounded strongly in 2H2025, reflecting operational improvements after ramping up new products. The proposed final dividend rose to 0.87₵ per share, up from 0.63₵ in FY2024, supported by a healthy cash balance and lower expected capex.
Exceptional Earnings and Expenses
- One-off optimisation costs of S\$3.6m were incurred for the closure and write-off of fixed assets and related reinstatement costs.
- Continued investment phase losses of S\$5.4m were recorded in Sydrogen, the company’s hydrogen business.
- Depreciation costs increased by S\$4.2m due to prior capacity investments.
Chairman’s Statement
Dr Shi Xu, Executive Chairman and Group CEO:
“FY2025 Performance: Revenue achieved strong rebound; proposed dividend increase on strong performance, improved outlook, and lower expected capex.”
The tone is positive, emphasizing improved business momentum, strong financial recovery, and confidence in future prospects. The management highlights continued wallet share growth with key customers, expansion in China, India, Vietnam, and Europe, new product launches, and a focus on technology development and operational efficiency.
Corporate Actions and Strategic Initiatives
- Acquisitions: EuroCoating Group in 2025 and Axyntec in 2024, strengthening European coverage and access to new industries and technologies.
- Global Expansion: China Plus One strategy with expanded operations in Vietnam and India to enhance supply chain resilience.
- Capex: Main capex cycle completed, with future focus on optimizing asset utilization and improving ROA.
Business Segment Outlook
- Advanced Materials Consumer: Continued balanced growth, new product launches, and expansion into AR/VR and new geographic markets.
- Advanced Materials Industrial: Double-digit growth targeted for FY2026, driven by European and China automotive sectors.
- IEBU: Positive momentum and recovery in photonics, new energy, automotive, and semiconductor segments.
- NFBU: Targeting double-digit growth via new health sensing and flash lens projects, diversifying into automotive, smart eyewear, AI datacenters, and robotics.
- Sydrogen: Strategic advances in hydrogen, with top 3 market share for fuel cell bipolar plate coatings in China. Regulatory support and new product certifications expected to drive adoption.
Asset Revaluation and Cash Flow
Asset revaluation was not specifically mentioned. Cash flow remained strong, with ending cash balance at S\$85m after funding strategic capex and acquisitions. Operating cash flow supported dividend increases, and the company maintains a prudent financial stance.
Forecasted Events and Risks
- Regulatory support in China’s hydrogen sector expected to drive Sydrogen’s growth.
- Site commissioning for Towngas Pipeline-to-Power project anticipated in Q1 2026.
- Management expects double-digit growth across main business units in FY2026, with further improvement in profitability.
Conclusion & Investment Recommendations
Overall, Nanofilm Technologies International delivered a strong financial performance in FY2025, marked by robust revenue growth, improved margins, and disciplined cost management. The positive outlook for FY2026, ongoing expansion, and new product launches underpin a confident, growth-oriented strategy. The management’s tone is optimistic, and shareholder rewards via higher dividends further strengthen the investment case.
- If you are currently holding this stock: The results and outlook are positive, and the company is entering a phase of higher profitability with lower capex and increased dividends. Consider holding or increasing your position if your portfolio aligns with growth and innovation themes in advanced materials and hydrogen technologies.
- If you are not currently holding this stock: The company’s turnaround, improving margins, and strong cash flow make it a compelling candidate for consideration, especially for investors seeking exposure to high-tech manufacturing, global expansion, and new energy markets. However, monitor execution risk in new geographies and product lines.
Disclaimer: This article is based strictly on information disclosed in the company’s official FY2025 results. It does not constitute investment advice. Please conduct your own due diligence and consult a financial advisor before making any investment decisions.
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