SIA Engineering Company (S59) Q2 25/26 earnings summary

Executive summary

• Net profit rose 21.1% year-over-year to $83.3 million for 1H FY2025-26, driven by robust MRO demand and improved operational performance.

• Revenue increased 26.5% year-over-year to $729.0 million, supported by strong demand for MRO services.

• Operating profit rose to $13.0 million from $3.4 million, despite one-time impairment and IT system costs.

• Share of profits from associates and joint ventures improved 21.7% year-over-year to $71.3 million.

• Interim dividend of 2.5 cents per share declared, to be paid on 28 November 2025.

Financial highlights

• Group expenditure increased 25.0% year-over-year to $716.0 million, mainly from higher material, staff, and IT costs, and a $4.0 million impairment provision.

• Basic earnings per share improved 21.5% to 7.45 cents.

• Net asset value per share at 151.4 cents as of 30 September 2025.

• Cash and bank balances stood at $575.2 million as of 30 September 2025.

• Total assets were $2,103.1 million, down 1.8% from 31 March 2025.

Outlook and guidance

• Sustained MRO demand expected, supported by travel and passenger traffic growth.

• New service agreements with Singapore Airlines and Scoot worth $1.3 billion commenced April 2025.

• Ongoing rollout of digital tools, AI, and process optimisation initiatives.

• Strategic focus on Asia-Pacific expansion, next-gen aircraft capabilities, and operational resilience.

• Risks remain from geopolitical tensions, supply chain issues, and inflationary pressures.