SATS, a leading global aviation services and food solutions provider, has reported a 20% year-on-year increase in its core profit after tax and minority interests (PATMI) for the first quarter of the financial year 2026. This growth, amounting to $51.5m (S$70.5m), was primarily fuelled by robust air cargo volumes and enhanced yields, despite global trade uncertainties.
The company’s revenue rose by 9.9% year-on-year to $1.1b (S$1.5b), with significant contributions from its Gateway segment. Cargo handling and ground handling revenues increased by 12.2% and 9.2% respectively. SATS has successfully outpaced industry cargo volumes for seven consecutive quarters, gaining market share through new contracts and expanded services with existing clients.
SATS’ Food Solutions segment also saw a 5.6% rise in revenue, driven by increased aviation food volumes and higher non-aviation food average selling prices. The company is optimising its operations by shifting its Singapore kitchen model to an assembly-driven operation, which is expected to enhance efficiency and reduce capital expenditure.
Looking ahead, SATS anticipates continued growth in its core net profit for FY26 and FY27, with expectations of mid-single digit growth in cargo tonnage. The company is also focused on reducing its debt, targeting a $146.2m (S$200m) reduction in FY26, which is expected to lower financing costs and support further profit growth.
Despite potential risks from global economic instability and trade disruptions, SATS remains optimistic about its growth prospects, maintaining a “BUY” recommendation with a raised target price of $2.78 (S$3.80).
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