SATS (S58) Q2 2026 earnings summary

Executive summary

• Achieved year-on-year growth across all business lines, with record cargo tonnage and strong market share gains in APAC and EMEA offsetting U.S. softness.

• Outperformed IATA cargo growth for the eighth consecutive quarter, with APAC and EMEA driving results.

• PATMI increased 13.3% year-on-year to $78.9M, with interim dividend of 2 cents per share declared, up 33%.

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

• Revenue for the half year ended 30 September 2025 rose 9.1% to $3.08B, with operating profit up 17.7%.

Financial highlights

• 2Q FY26 revenue rose 8.4% year-on-year to $1.57B, with full half-year revenue at $3.08B (+9.1%).

• EBITDA grew 15.7% to $307.4M, margin expanding from 18.3% to 19.6%.

• EBIT increased 23.7% to $157.4M, margin at 10.0%.

• PATMI margin improved to 5.0% from 4.8% year-on-year.

• Gateway Services revenue grew 11.0% to $2.39B, Food Solutions revenue up 3.2% to $684.8M.

Outlook and guidance

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

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

• International travel growth expected to outpace domestic, driving demand for full-service meal offerings.

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

• Expansion in Americas and EMEA to capture e-commerce and freight-forwarder volumes.