SATS (S58) Q1 2026 earnings summary

Executive summary

• Net profit for 1Q FY26 rose 9.1% year-over-year to S$70.9M, with revenue up 9.9% to S$1.51B, driven by volume growth and market share gains in cargo and aviation food services.

• Cargo tonnage reached a record 2.4M (+10.4% YoY), flights handled grew 2.6% YoY to 158.8K, and aviation meals served increased 5.6% YoY to 16.4M.

• Both Food and Gateway segments posted higher revenue and EBIT, with EBIT margins improving to 8.7% for each.

• Strategic customer wins, including Emirates, Cathay, and Riyadh Air, strengthened presence in key hubs and expanded the network.

• Industry recognition received with the Global Air Cargo Handler of the Year award and successful launch of a new handling center in Singapore.

Financial highlights

• EBITDA margin sustained at 18.2%, with EBITDA up 9.9% to S$273.8M.

• Revenue grew 9.9% year-on-year to S$1,506.3M, with operating expenses rising at the same rate.

• PATMI increased 9.1% YoY to S$70.9M; EBIT margin at 8.3%.

• Free cash flow was negative S$4.5M, mainly due to delayed customer payments.

• SGD 100 million in debt repaid in Q1, with SGD 125 million repaid year-to-date.

Outlook and guidance

• Confident in continued volume growth above market rate, supported by recent customer wins and network expansion.

• Focus on operational efficiency, especially in Singapore, and ongoing investment in IT and AI to drive productivity.

• Expectation to maintain strong cash flow, continue debt reduction, and enhance capital returns to shareholders.

• Gateway Services and Food Solutions expected to remain resilient, benefiting from business mix and regional demand.

• Strategic infrastructure upgrades in Singapore and new partnerships to drive future growth.