SATS (S58) Q4 2026 earnings summary

Executive summary

• Achieved record full-year revenue of S$6.35B, up 9% year-over-year, driven by strong cargo and food segments.

• PATMI increased 17% to S$285.2M for FY26, with Q4 PATMI up 31% to S$50.7M.

• Cargo segment outperformed IATA benchmarks for 10 consecutive quarters, with APAC and EMEAA regions showing strong growth.

• Secured major contract renewals and new wins, including EVA Air (US), Air Europa Cargo (Spain), Azul Air (Brazil), and Allegiant Air (Americas).

• Completed acquisition of Aviapartner in Brussels, expanding cargo terminal capacity and capabilities.

Financial highlights

• Fourth quarter revenue rose 9.8% year-over-year to S$1.62B, with EBITDA up 3.9% to S$276M and EBIT up 1% to S$109.4M.

• EBITDA margin for FY26 improved to 18.1%, and EBIT margin to 8.6%.

• PATMI margin for FY26 increased to 4.5%.

• Proposed final dividend of S$0.05 per share, up from S$0.035; full-year payout increased 40% to S$0.07.

• Free cash flow for FY26 was S$199.5M, up 28.5% year-over-year, with operating cash flow after lease at S$560.5M.

Outlook and guidance

• Progressing toward FY 2029 targets, with ROE at 10.7% and focus on margin improvement.

• Cargo demand remains resilient outside Gulf-linked corridors, with APAC and European carriers posting growth; e-commerce volumes expected to rise.

• Ground handling growth driven by new contracts and network expansion, including Aviapartner acquisition.

• Non-aviation food demand remains robust, with growth in Bangalore and Tianjin kitchens.

• Elevated input costs and ongoing geopolitical risks may weigh on margins in the near term.