SATS (S58) Q2 2025 earnings summary

Executive summary

• 1H FY25 revenue rose 14.8% YoY to S$2.82B, driven by aviation recovery, air cargo growth, rate increases, and contract renewals.

• PATMI for 1H FY25 was S$134.7M, reversing a loss of S$7.8M in 1H FY24, reflecting scale and operating leverage.

• Operating profit surged to S$240.1M from S$72.0M, with margin expanding to 8.5% from 2.9% YoY.

• Food Solutions revenue grew 28.6% to S$663.6M; Gateway Services revenue increased 11.1% to S$2.16B.

• 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%.

• Expenditure (excluding depreciation/amortisation) increased 9.3% to S$2.31B, in line with higher business volume.

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

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

• Net cash outflow from financing activities was S$323.3M, mainly from loan repayments and dividend payments.

Outlook and guidance

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

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

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