Frencken (SGX:E28)'s 1Q26 earnings appear soft but are in line with expectations. Earnings of S$8 (-20% y-o-y) formed 18% of our full-year forecast, in line with expectations. The decline was driven by a 6% y-o-y revenue growth and marginally softer net margin.
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Revenue fell across two key segments offset by an increase in medical revenues.
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Frencken's 1Q26 revenue fell 6% y-o-y, driven by the semiconductor (-7% y-o-y) and analytical life sciences (-21% y-o-y) segments. Decline in the semiconductor segment was due to moderation in orders of an advanced module from its peak level in 2025.
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The medical segment (+5% y-o-y) grew on increased customer demand in Europe.
Outlook appears soft for 1H26 but 2H26 revenue is expected to catch up and drive earnings growth for 2026.
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Expect 1H26 revenue to be stable y-o-y vs 1H25, with segment performances as follows:
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