SATS (S58) Q2 2026 earnings summary

Executive summary

• Achieved strong year-on-year growth across all business lines, with revenue for 1H FY26 rising 9.1% to $3.08 billion, driven by record cargo volumes and steady food services.

• PATMI increased 11.2% to $149.8 million, with margin improvement and interim dividend of 2 cents per share declared, up from 1.5 cents.

• EBITDA for 2Q FY26 grew 15.7% to $307.4 million, with margin expanding to 19.6%.

• Free cash flow improved by $51.7 million year-on-year, reflecting operational performance and working capital management.

• Outperformed IATA cargo growth for the eighth consecutive quarter, with APAC and EMEAA gains offsetting U.S. declines.

Financial highlights

• 2Q FY26 revenue rose 8.4% year-on-year to $1.57 billion, with cargo volume up 7.1% and aviation meals up 0.9%.

• EBIT for 2Q FY26 increased 23.7% to $157.4 million, with margin at 10.0%.

• Gateway Services revenue grew 11.0% to $2.39 billion, while Food Solutions revenue increased 3.2% to $684.8 million.

• Basic earnings per share for 2Q FY26 was 5.3 cents, up from 4.7 cents.

• Free cash flow for YTD FY26 was negative $1.1 million, a significant improvement from negative $52.8 million in the prior year.

Outlook and guidance

• Broader cargo trends remain supportive, with APAC and EMEAA expected to show strong momentum and Q2 inventory front-loading moderating Q3 seasonality.

• Gateway Services and Food Solutions are positioned for continued growth, leveraging operational agility and network expansion.

• Asia-Pacific passenger traffic projected to grow 9% year-on-year in 2025, supporting aviation meal demand.

• Focus remains on operational efficiency and cost management amid global trade uncertainties.

• Investments in automation and infrastructure upgrades in Singapore aim to enhance long-term competitiveness.