Singapore – SATS Ltd reported a 6% year-on-year rise in net profit to 75.1 million Singapore dollars for the quarter ended Jun 30, lifted by double-digit revenue growth in its Gateway Services arm that offset inflationary cost pressures and a weaker contribution from associates.
Earnings per share increased to 5.1 Singapore cents from 4.8 cents a year earlier. The board did not declare an interim dividend.
Group revenue climbed 11.3% YoY to S$1.68 billion, with Gateway Services contributing S$1.33 billion, up 12.8% on continued cargo volume gains that outpaced International Air Transport Association benchmarks. Food Solutions revenue advanced 5.4% to S$346.0 million on a favourable pricing mix and stronger demand for non-aviation meals.
Group EBITDA improved 5.9% to S$290 million, translating to a margin of 17.3%, while operating profit rose 6.8% to S$133.8 million. The share of profit from associates and joint ventures fell 18.9% to S$26.8 million, reflecting lower carrier volumes and one-off provisions.
Cost headwinds—chiefly higher fuel, transport and other inputs stemming from Middle East tensions—compressed the EBIT margin to 8.0% from 8.3% a year earlier. Operating cash flow after lease repayments dropped to S$23.2 million (1Q FY26: S$45.8 million) owing to working-capital timing, resulting in negative free cash flow of S$22.6 million.
During the quarter SATS secured ground-handling contracts with Air France-KLM at New York’s JFK Airport and with Singapore Airlines at Kuala Lumpur International Airport, and renewed China Airlines’ cargo agreements across North America. In Food Solutions, it began inflight catering for Noida Airport in India and extended catering pacts with British Airways, Air France and KLM in Singapore.
Chief executive Kerry Mok said the first-quarter performance underscored the resilience conferred by the group’s diversified global network, despite geopolitical uncertainties and rising costs. He indicated that SATS will focus on disciplined cost control, technology-driven efficiency and selective investment to capture shifting trade flows and sustain long-term growth.