SATS (S58) Q3 2026 earnings summary

Executive summary

• Achieved record cargo volume in Q3 FY26, with strong year-on-year growth across APAC, EMEAA, and all business lines, driven by seasonal peak demand and robust performance.

• Revenue grew 8.0% year-on-year to S$1.65B, with EBITDA up 12.8% and PATMI up 20.4% to S$84.7M.

• Secured new multi-year contracts in Paris, Americas, Brazil, Japan, and Europe, expanding cargo, ground handling, and food services.

• Continued investment in infrastructure and technology, including a 20-year lease at London Heathrow, expansion at Frankfurt, and launch of an AI-driven supply chain control tower.

• Outperformed IATA's cargo growth for nine consecutive quarters, reinforcing global network strength.

Financial highlights

• 3Q FY26 revenue: S$1,645.1M (+8.0% YoY); EBITDA: S$297.7M (+12.8% YoY, margin 18.1%); EBIT: S$151.3M (+18.8% YoY, margin 9.2%).

• PATMI: S$84.7M (+20.4% YoY, margin 5.2%).

• 9M FY26 revenue: S$4,723.6M (+8.7% YoY); PATMI: S$234.5M (+14.4% YoY).

• Free cash flow declined year-on-year due to higher capex and lease payments for facility expansions.

• Operating expenditure (excluding D&A) increased 7.0% in 3Q and 7.8% in 9M FY26, slower than revenue growth.

Outlook and guidance

• Q4 expected to be seasonally weaker, especially in cargo and food, but full-year cargo outlook remains optimistic with structural demand for high-value and e-commerce shipments.

• APAC passenger services projected to grow over 7%, while U.S. domestic market remains soft; company aims to outperform IATA's 2.4-2.6% industry forecast.

• Continued focus on margin improvement, cost synergies, and strengthening the global network toward FY 2029 ambitions.