SIA Engineering Group has announced a net profit of $81.9m for the first half of the financial year 2026-27, despite a slight year-on-year decline of $1.4m. The group’s operating profit surged to $25.7m, nearly doubling from the previous year, driven by robust demand for maintenance, repair, and overhaul (MRO) services and reduced losses at start-up subsidiaries.
The group’s revenue for the period fell by 9.7% to $658.6m, primarily due to a decrease in material revenue, although revenue excluding materials saw a modest increase of 1.6%. Expenditure dropped by 11.6% to $632.9m, attributed to lower material and repair costs and the absence of last year’s impairment provision.
The share of profits from associated and joint venture companies decreased by $7.6m to $63.7m, impacted by expansion costs at an engine joint venture. However, these costs are expected to decrease from FY2027-28 as facility development concludes.
In the second quarter, SIA Engineering’s net profit rose by $1.2m to $41.6m, with operating profit improving by $4.6m to $12.5m. The company declared an interim dividend of 2.5 cents per share, payable on 27 November 2026.
Looking ahead, SIA Engineering remains optimistic about the Asia-Pacific MRO market, despite challenges such as rising energy costs and supply chain bottlenecks. The company plans to expand its regional presence and enhance capabilities for next-generation aircraft.
