SINGAPORE – SIA Engineering Group posted a net profit of S$83.3 million for the six months ended 30 Sept 2025, up 21.1 % year-on-year as buoyant demand for maintenance, repair and overhaul (MRO) services lifted revenue and associate contributions.
Group revenue rose 26.5 % YoY to S$729.0 million, while basic earnings per share increased to 7.45 Singapore cents from 6.13 cents a year earlier. The board declared an interim dividend of 2.5 Singapore cents per share, payable on 28 Nov 2025.
An 82.4 % surge in operating profit to S$13.0 million reflected revenue growth that outpaced the 25.0 % rise in expenditure to S$716.0 million. Higher material, manpower and repair costs, IT implementation expenses and a S$4.0 million impairment on an underperforming long-term contract were partially offset by stronger volumes in line and base maintenance.
Contributions from associated and joint-venture entities climbed 21.7 % to S$71.3 million. The engine and component segment accounted for S$68.6 million, S$12.4 million higher YoY, while airframe and line maintenance added S$2.7 million, up S$0.3 million.
Cost pressures—principally from supply-chain tightness and continued investment in digital systems—tempered margins. Equity attributable to shareholders slipped 1.5 % to S$1.69 billion after the payment of last year’s final dividend and adverse currency translation effects, although cash and bank balances remained healthy at S$575.2 million.
During the half, SIA Engineering activated new comprehensive services agreements worth about S$1.3 billion with Singapore Airlines and Scoot, began line-maintenance operations at the newly opened Techo International Airport in Phnom Penh via its joint venture, and added component repair capabilities in Malaysia. Management said the focus remains on expanding Asia-Pacific capacity, developing next-generation aircraft capabilities and embedding digital solutions to enhance productivity.
Looking ahead, the company expects resilient travel demand to continue supporting MRO activity but cautioned that geopolitical tensions and supply-chain constraints could pose challenges. It will maintain a “vigilant” stance on cost control while pursuing long-term growth opportunities across the region.
Comments