KUALA LUMPUR (Feb 25): Pentamaster Corp Bhd (KL:PENTA) recorded a 42.5% year-on-year surge in its latest fourth-quarter net profit, reaching a two-year high, as its automated test equipment (ATE) segment staged a significant turnaround.

Net profit for the quarter ended Dec 31, 2025 (4QFY2025) rose to RM20.18 million from RM14.16 million a year earlier, its Wednesday bourse filing showed. The performance was driven by a recovery in industry conditions that saw the ATE segment swing back to profitability. The segment's bottom line was further bolstered by project cancellation charges and the monetisation of previously written-off inventory.

The group did not recommend a dividend with its latest results announcement.

During the quarter under review, Pentamaster's factory automation solutions, or FAS segment, also continued to post improved earnings, supported by the timing of project deliveries and a higher level of completion.

The group noted that the FAS unit has successfully diversified away from its heavy reliance on the medical sector, while the ATE segment is expected to remain on a positive trajectory. Strengthening customer investment sentiment is expected to make ATE a significant growth driver in 2026.

For the full FY2025, which the group described as a "transition year" as it laid its foundation for the next growth cycle in the AI space, the group's net profit fell 5% to RM61.95 million from RM65.21 million in FY2024, as revenue dropped 6.3% to RM583.69 million from RM623.02 million.

Looking ahead, Pentamaster anticipates its growth will be underpinned by three key pillars within the semiconductor system: power semiconductor, electro-optical and advanced packaging segments.

"As the group enters 2026, the focus shifts decisively from preparation to execution. With a growing pipeline of project-based engagements, customer qualification activities and improving visibility across key end markets that include local presence and supply chain management, the group expects operating momentum to build progressively over the course of the year," the group said.

While the external environment remains volatile, management "remains cautiously optimistic that the foundations established in 2025 will translate into more tangible contributions, particularly within the ATE segment, as projects advance through development and deployment phases", it added.

Shares in Pentamaster ended three sen or 0.92% lower at RM3.23, valuing the group at RM2.3 billion.