SIA Engineering Company (S59) Q4 25/26 earnings summary

Executive summary

• Group profit after tax/net profit rose 21% year-over-year to $168.9M, the highest since the pandemic, driven by robust MRO demand, higher output, and margins.

• Group revenue increased 14.3% year-over-year to $1,422.9M, reflecting higher flight volumes, maintenance activity, and labor rates.

• Operating profit more than doubled to $29.4M, with improved performance partially offset by startup costs and higher taxation.

• Share of profits from associates and joint ventures grew 22.5% year-over-year to $145.3M.

• Proposed final dividend of 8.5 cents per share, total FY dividend at 11.0 cents, up from 9.0 cents last year.

Financial highlights

• Revenue for FY2025-26: $1,422.9M (+14.3% year-over-year); operating profit: $29.4M (+101.4%).

• Net profit: $168.9M (+21.0% year-over-year); basic EPS: 15.09 cents (+21.1%).

• Net asset value per share increased to 156.9 cents; return on equity rose to 9.7%.

• Cash and bank balances decreased to $564.8M, mainly due to dividend payments and lease repayments.

• 2H revenue: $693.9M (+3.7% year-over-year); 2H net profit: $85.6M (+20.9%).

Outlook and guidance

• Capacity expansions underway at key joint ventures, with SAESL and SLSSS set to boost output by 40%.

• New commercial agreements worth ~$1.3B with major airline customers effective from April 2025.

• Overseas growth includes new MRO joint ventures in China and India, and expanded line maintenance network in APAC.

• Ongoing digital transformation and AI adoption to drive operational excellence.

• Disciplined cost management to address inflation, energy cost pressures, and geopolitical risks.