SATS FY26 revenue at S$6.35 billion, profit at S$285.2 million on broad‐based volume gains

SGX Filings
05/25

SINGAPORE – SATS Ltd booked a net profit attributable to shareholders of S$285.2 million for the financial year ended 31 March 2026 (FY26), up 17.0% year-on-year, as resilient cargo flows and market-share gains in ground handling offset the late-year drag from Middle East hostilities.

Basic earnings per share rose to 19.2 cents from 16.4 cents a year earlier. The board proposed a final dividend of 5.0 Singapore cents a share—43% higher than the previous year—bringing the full-year payout to 7.0 cents. Subject to shareholder approval at the 17 July 2026 AGM, the final dividend will be paid on 6 August 2026, with books closing on 24 July 2026.

Group revenue reached a record S$6.35 billion, an increase of 9.0% YoY, while EBITDA expanded 10.6% to S$1.15 billion, improving the margin to 18.1% from 17.8%. Operating profit grew 14.2% to S$543.3 million, underpinned by a 10.8% rise in Gateway Services turnover to S$4.95 billion and a 2.9% uptick in Food Solutions revenue to S$1.39 billion. Free cash flow stood at S$215.8 million after higher capital expenditure linked to new facilities.

Management cited strong cargo volumes—up 7.0% to 9.65 million tonnes—and continued share gains in ground handling, particularly in Asia-Pacific, where flights handled rose 8.1% to 358,100. These factors outweighed higher operating costs stemming from inflation and the late-quarter escalation of conflict in the Middle East, which curtailed some traffic through Gulf hubs and squeezed margins.

SATS continued to invest for growth, renewing cargo contracts with EVA Air across U.S. stations, adding Air Europa Cargo handling in Spain, and acquiring Aviapartner Cargo NV at Brussels Airport. The group is also deploying automation and artificial-intelligence tools across its 225-station global network, with Singapore serving as a test-bed for new operating models.

Chief executive Kerry Mok said the record revenue reflected “consistent execution across our network” despite geopolitical and cost pressures. He noted that the Middle East conflict disrupted flows in the final quarter, but the company mitigated the impact by redirecting capacity and winning new business in Europe. Looking ahead to FY27, Mok indicated that SATS will “maintain disciplined investment in infrastructure and technology” while targeting further market-share gains as shippers diversify trade lanes amid ongoing geopolitical uncertainty.

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