Integrated Micro-Electronics, Inc. (IMI), a global leader in electronics manufacturing services and a subsidiary of AC Industrials, today announced its financial results for the first quarter of 2025, highlighting improved margins and a return to profitability despite ongoing headwinds in the electronics industry.
For the quarter ending March 31, 2025, IMI posted group revenues of US$248 million, including US$220 million from its wholly owned core businesses. This represents a 14% year-on-year decline, primarily attributed to continued softness across the global electronics sector.
However, the company reported significantly improved profitability, driven by a comprehensive restructuring program initiated in mid-2024. IMI achieved a gross profit margin of 9.5%, up from 8.0% in the same period last year, and recorded a group net income of US$3.3 million, a substantial turnaround from a US$3.7 million net loss in Q1 2024.
EBITDA more than doubled year-on-year to US$16.1 million, with a strengthened EBITDA margin of 6.5%, up from 2.5%. This improvement was largely due to significant reductions in core fixed overhead and SG&A expenses, totaling US$6.1 million across the group. A similar cost rationalization strategy applied to VIA yielded an additional US$6.3 million in savings, primarily from SG&A cuts.
The company also benefited from favorable foreign exchange movements, with a US$1.4 million FX gain due to the Euro’s appreciation against the US dollar.
IMI’s balance sheet continued to strengthen, with cash reserves rising to US$115 million and sustained efforts to manage debt levels. Capital expenditures were kept disciplined at US$1.6 million for the quarter.
Commenting on the results, IMI CEO Louis Hughes said: “The cost rationalization program we implemented has been instrumental in this quarter’s positive financial results. We successfully managed a 14% decrease in core fixed overhead and SG&A expenses compared to Q1 of last year through the consolidation of sites and decentralizing functions back into our operating facilities.
“With a more agile organization in place, we are better equipped to adapt to the dynamic market environment and further improve on the 6.5% EBITDA we achieved this quarter. While global tariffs pose uncertainties, they also create opportunities. Our broad geographic footprint enables us to work closely with customers and adapt supply chains to mitigate these pressures. We remain focused on securing new business and further improving profitability as market conditions stabilize.”
As the industry continues to evolve, IMI is committed to operational resilience and customer-driven innovation, positioning itself for long-term growth.
