SATS Ltd has reported its financial performance for the three months ended 30 September 2025 (2Q FY26).
Amid continued volatility in global trade flows, SATS Group achieved 2Q FY26 revenue of S$1.57 billion, up 8.4% year over year. The Group attributes this to strong cargo performance alongside steady contributions from ground handling and food services.
Gateway Services revenue rose 10.7% year-on-year to S$1.22 billion, driven by continued market share gains with cargo volumes that outperformed IATA’s global growth benchmarks.
Food Solutions revenue grew 1.0% year-on-year to S$356.5 million, reflecting stable inflight meal demand amid air travel expansion in Asia-Pacific. Growth was modest, as the prior-year period benefited from catch-up pricing adjustments.
The group’s expenditure (excluding depreciation and amortisation) increased 6.7% year-on-year to S$1.26 billion.
Operating profit for 2Q FY26 rose 23.7% year-on-year to S$157.4 million, with operating profit margin expanding to 10.0% from 8.8% in the prior year. This improvement reflects favourable operating leverage from volume growth and continued operational efficiency gains.
The share of earnings from associates and joint ventures decreased 7.5% year-on-year to S$27.5 million, due to ramp-up costs associated with new customer onboarding in a joint venture.
The group posted PATMI of S$78.9 million, an increase of 13.3% over 2Q FY25.
SATS Group achieved revenue of S$3.08 billion, up 9.1% from the same period last year. Strong cargo volume growth, along with contributions from ground handling and food services, contributed to the Group’s performance.
The group’s expenditure (excluding depreciation and amortisation) increased 8.3% year-on-year to S$2.50 billion.
Operating profit rose 17.7% year-on-year to S$282.6 million, with operating profit margin expanding to 9.2% from 8.5%, reflecting the Group’s focus on operational efficiency.
The share of earnings from associates and joint ventures decreased 7.3% year-on-year to S$60.6 million, primarily due to a one-off net gain recognised in the prior-year period and ramp-up costs associated with new customer onboarding in a joint venture.
The Group posted PATMI of S$149.8 million, an increase of 11.2%.
Total equity increased by S$134.0 million, reaching S$2.90 billion as of 30 September 2025, compared to 31 March 2025. This increase was primarily attributed to the profit generated in the half-year ended 30 September 2025.
As of 30 September 2025, total assets stood at S$8.89 billion, an increase of S$5.5 million from 31 March 2025.
Total liabilities decreased by S$128.5 million from 31 March 2025 to S$5.99 billion, due mainly to lower trade and other payables and the repayment of S$100 million in Singapore dollar Medium Term Notes (SGD MTN) in April 2025.
Operating cash flow after lease repayment for YTD FY26 was S$123.0 million, an increase of S$80.1 million from the prior year, underpinned by stronger operational performance and working capital management.
YTD FY26 free cash flow was negative S$1.1 million, compared to negative S$52.8 million in the prior year.
In view of the group’s financial performance in 1H FY26, the board of directors has declared an interim dividend of 2 cents (S$) per share, payable on 5 December 2025.
The book closure date is November 24, 2025.
In Singapore, the group continues to strengthen its role as the anchor of SATS’ global network.
The newly announced Hub Handler of the Future programme will reimagine air hub operations through automation and workforce innovation, supporting Changi’s long-term competitiveness.
Beyond aviation, Marina Bay Cruise Centre Singapore, managed by SATS-Creuers Cruise Services, has completed a S$40 million upgrade to accommodate dual-ship calls and enhance passenger experience. Together, these initiatives underscore SATS’ commitment to advancing Singapore as a world-class hub for trade and travel.
Kerry Mok, SATS President and Chief Executive Officer, said, “SATS’ second quarter results were enabled by a global network and consistent execution across our operations. While volumes were strong, we recognise that the quarter benefited in part from front-loading ahead of tariff changes. We are actively managing our capacity and resources as demand patterns evolve.
“We continue to work closely with our key customers and are investing in specialised handling capabilities to support their growth.
“Closer to home, Singapore remains at the heart of our network and multi-year transformational journey. We are building the foundation for next-generation mega air hubs that bring together technology, innovation and people to shape the future of travel and logistics. These upgrades to Singapore’s air and sea gateway infrastructure reinforce our role in enhancing Singapore’s global connectivity.
“Our first-half performance demonstrates the resilience of our diversified platform and the effectiveness of our network operational approach. We remain committed to delivering value through disciplined execution and strategic focus as we navigate the quarters ahead.”
