SIA Engineering Company (S59) Q1 25/26 earnings summary

Executive summary

• MRO service demand increased in 1Q FY2025-26, with flight volumes up 3.5% year-over-year in Singapore.

• Base Maintenance Malaysia's first hangar is set to open by year-end; Cambodia JV to start in 2H 2025.

• Renewed $1.3 billion MRO agreements with major airlines for two years, with an extension option.

• Continued rollout of digital solutions and new Enterprise Operating System to boost efficiency.

Financial highlights

• Revenue rose 33.4% year-over-year to $358.4 million in 1Q FY2025-26.

• Operating profit increased to $5.1 million, up $4.1 million year-over-year.

• Net profit after tax reached $42.9 million, a 29.2% increase year-over-year.

• Share of profits from associates and JVs grew 35.0% to $37.8 million.

Outlook and guidance

• Passenger traffic growth in Asia-Pacific expected to sustain MRO demand.

• Cautious of macroeconomic risks: geopolitical tensions, trade policies, and supply chain issues.

• Focus remains on Asia-Pacific expansion, next-gen aircraft capabilities, and core service enhancement.