SIA Engineering Company (S59) Q2 24/25 earnings summary

Executive summary

• Net profit for 1H FY24/25 rose 16% year-over-year to $68.8 million, driven by healthy MRO demand, improved operating performance, and higher contributions from associates and joint ventures.

• Revenue increased 12.1% year-over-year to $576.2 million, with all operating segments recording higher revenue.

• Operating profit improved to $3.4 million, as revenue growth outpaced expenditure increases.

• Interim dividend of 2.0 cents per share declared, payable on 29 November 2024.

• Basic earnings per share for 1H was 6.13 cents, up from 5.28 cents a year ago.

Financial highlights

• Group operating profit reached $3.4 million, up from $0.1 million in 1H FY23/24.

• Share of profits from associates and joint ventures increased 17.2% year-over-year to $58.6 million.

• Cash and bank balances decreased to $493.2 million, reflecting outflows for dividends, capex, and lease repayments.

• Net asset value per share at 147.0 cents, down from 150.3 cents in March 2024.

• Return on shareholders' funds improved to 6.4% from 5.8% year-over-year.

Outlook and guidance

• MRO demand expected to remain robust, supported by strong air travel and delayed new aircraft deliveries.

• Focus on productivity, cost discipline, digitalisation, and talent development to address ongoing challenges.

• Expansion of capabilities and geographical presence through collaborations and new facilities in Malaysia and the Philippines.

• Associated start-up and development costs anticipated over the next two to three years as growth initiatives are implemented.