Venture’s Third-Quarter Growth Accelerated, but What About Cash for Dividends?

Venture Corporation (SGX: V03) reported a stronger third quarter: revenue rose 26.0% from a year earlier and net profit grew 21.9%. For dividend investors, the question is whether that growth will also produce more cash. The figures come from a business update dated 6 November 2026, rather than a detailed quarterly set of financial statements. [S1, p. 1] [S1, p. 2]

The update announced no new dividend. Venture had announced a 30-cent ordinary interim dividend for the first half of 2026 in August; its stated September payment date is now past. The November figures are therefore evidence about the business behind future payouts, not a fresh entitlement. [S1, p. 1] [S2, p. 11]

Growth gathered pace

Third-quarter revenue reached S$790.4 million, compared with S$726.2 million in the second quarter. The year-on-year growth rate also strengthened: the second-quarter rate was 12.5%, while the third-quarter rate was 26.0%. Net profit for the latest quarter was S$67.8 million. These are reported business-update figures, and the update does not provide a detailed profit-and-loss statement for the quarter. [S1, p. 2] [S3, p. 1]

Most of the reported increase in third-quarter revenue came from Portfolio B. Venture put that portfolio’s year-on-year increase at about S$154 million, against about S$9 million for Portfolio A. Portfolio B includes test and measurement instrumentation, networking and communications, and semiconductor-related equipment; the company attributed its growth to production ramp-ups and market-share gains across its technology domains. The portfolio figures are rounded, so they should not be treated as an exact breakdown of the group’s revenue increase. [S1, p. 3]

That mix matters for the dividend question. Stronger sales and profit give Venture more scope to sustain distributions, but accounting profit does not show when customers pay or how much cash is tied up in inventory.

Working capital is still the test

Venture reported working capital of S$1.06 billion at 30 September, up from S$830.8 million at the end of 2025. It said it had increased inventories to secure critical components and meet customer demand. The update described operating activities as cash-generative but did not give a third-quarter operating cash-flow figure. Investors cannot use that description to establish that cash conversion recovered. [S1, p. 4]

The last detailed cash-flow statement, for the six months ended 30 June, shows why the distinction matters. Net cash generated from operating activities was S$12.9 million, versus S$149.8 million a year earlier, as inventories absorbed S$194.0 million of cash. Venture held S$1.108 billion in cash and cash equivalents at the June date. Those figures belong to the first half; they are context for assessing the September update, not September cash balances. [S2, p. 3] [S2, p. 4]

What the next filing needs to show

The third-quarter update improves the earnings picture, while leaving the cash picture incomplete. Venture said it maintained a strong net cash position at 30 September, but supplied no amount or quarterly cash-flow statement in this update. The next detailed results should show whether inventory is turning into sales and collections, and whether operating cash flow is catching up with profit. That is the clearest remaining test of how comfortably the business can fund future dividends. [S1, p. 4] [S2, p. 4]