SATS, a leading food solutions provider and global aviation gateway services leader, reported a net profit of $51.8m (S$70.9m) for the first quarter of the fiscal year 2026, marking a 9.1% increase from the previous year. The company’s revenue rose by 9.9% to $1.1b (S$1.51b), bolstered by growth in both its food solutions and gateway services segments.
The company’s cargo volume growth outpaced the industry average for the seventh consecutive quarter, with a 10.4% year-on-year increase. This performance was attributed to factors such as contract renewals with Singapore Airlines and increased e-commerce air cargo from China and Hong Kong to the US.
SATS’ management remains optimistic about future growth, citing strong customer relationships and a robust pipeline of contract negotiations. Recent additions to its customer portfolio include Cathay Pacific, Emirates, Riyadh Air, and Turkish Airlines. The company is also working on a capital return enhancement strategy, expected to be announced later this year.
Despite near-term tariff volatility, UOB Kay Hian Research maintains a “Buy” recommendation with a revised target price of $2.6 (S$3.52), reflecting confidence in its long-term growth prospects. The company continues to reduce its net gearing, which stood at 64.4% at the end of Q1 FY26, down from 66.6% at the end of FY25.
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