SATS (S58) Q2 2025 earnings summary

Executive summary

• 1H FY25 revenue rose 14.8% YoY to S$2.82B, with 2Q FY25 revenue up 14.1% to S$1.45B, driven by aviation recovery, air cargo growth, rate increases, and e-commerce demand.

• PATMI for 1H FY25 reached S$134.7M, reversing a prior loss, with 2Q FY25 net profit up 214% YoY to S$69.7M.

• Food Solutions revenue grew 28.6% to S$663.6M, and Gateway Services revenue increased 11.1% to S$2.16B in 1H FY25.

• Integration synergies contributed S$68M to EBITDA, with a target of S$100M annualized.

• Interim dividend of 1.5 cents per share declared, payable on 6 December 2024.

Financial highlights

• 2Q FY25 EBITDA margin expanded to 18.3% from 15.2% YoY; EBIT margin rose to 8.8% from 5.0%.

• 1H FY25 EBITDA up 48% to S$514.8M (margin 18.2%); EBIT up 233.5% to S$240.1M (margin 8.5%).

• Net cash from operating activities increased to S$208.9M from S$75.5M YoY.

• Free cash flow improved to negative S$69.3M in 1H FY25 from negative S$211.4M in 1H FY24.

• Earnings per share for 1H FY25 was 9.0 cents, compared to a loss per share of 0.5 cents in 1H FY24.

Outlook and guidance

• Positive momentum expected to continue into the next quarter, with travel and cargo demand peaking seasonally.

• Focus on operational efficiency, new product offerings, and scaling for sustainable revenue growth amid geopolitical complexities.

• Gateway Services business restructured to strengthen Singapore hub and international expansion.