SATS (S58) H1 2027 earnings summary

Executive summary

• 1H FY27 revenue rose 10.1% to S$3,389.1M and PATMI increased 4.3% to S$156.2M, while operating profit fell 1.2% to S$279.2M.

• Cargo and meal volumes supported growth, while Middle East disruption, higher input costs and working-capital outflows weighed on profit and cash flow.

• 2Q revenue rose 9.0% to S$1,712.7M; EBITDA fell 2.1% to S$300.9M and operating profit fell 7.6% to S$145.4M, while PATMI increased 2.8% to S$81.1M.

Financial highlights

• 1H EBITDA increased 1.7% to S$590.9M; expenditure excluding depreciation and amortisation rose 12.0% to S$2.80B.

• 1H profit before tax was S$220.4M versus S$230.1M; profit for the period rose to S$166.3M from S$160.6M.

• 2Q EBITDA margin was 17.6%, down 2.0ppt YoY; EBIT margin was 8.5% versus 10.0%, and PATMI margin was 4.7% versus 5.0%.

• 2Q PATMI growth was supported by lower tax expenses; the prior-year quarter included a S$10M tax provision that did not recur.

• Sequentially, 2Q EBITDA rose 3.8%, EBIT 8.7% and PATMI 7.9%.

Outlook and guidance

• FY29 targets include EBITDA margin above 20%, EBIT margin above 10%, SoAJV above S$150M, PATMI margin above 5% and ROE above 15%.

• Global network demand is expected to remain resilient; new customer wins, network expansion and higher Food Solutions meal volumes are expected to support activity, subject to conflict and trade conditions.

• Food Solutions input costs are expected to stay elevated near term; higher meal volumes should lift kitchen utilisation and contractual repricing is expected to moderate margin pressure.

• Cost discipline, prudent investment and AI-enabled operational planning are intended to support efficiency and profitable growth.