SINGAPORE – SIA Engineering Company Limited (SIAEC) on Thursday reported a net profit of S$40.3 million for the quarter ended 30 June 2026, down 6.1% year-on-year, as weaker materials revenue and reduced contributions from joint ventures offset higher operating profit.
Group revenue slipped 8.6% YoY to S$327.6 million. Basic earnings per share came in at 3.60 Singapore cents, compared with 3.84 cents a year earlier. The board did not declare any dividend for the quarter.
Operating profit rose to S$13.2 million, improving by S$8.1 million from a year ago, helped by an 11.0% decrease in expenditure to S$314.4 million following lower material and repair costs. Share of profits from associated and joint-venture companies fell 18.0% to S$31.0 million. Within this, engine and component JVs recorded an S$7.0 million (-19.2%) drop, reflecting start-up expenses for new capacity and capability projects, partly cushioned by higher engine shipments. Airframe and line-maintenance JVs contributed S$0.2 million more (+14.3%) amid a 2.9% uptick in flights handled at Changi Airport to 40,615.
Key operational indicators were mixed. Heavy checks performed at the Singapore base declined to 20 from 23, while light checks were flat at 147. The inventory technical-management business oversaw a fleet of 151 aircraft, down from 166 a year ago.
SIAEC said demand for maintenance, repair and overhaul services “remains resilient” despite geopolitical tensions, supply-chain constraints and inflationary pressures. The company is focusing on “operational nimbleness, productivity gains and cost discipline” to navigate the volatile environment.
During the quarter the group officially opened its first hangar at Base Maintenance Malaysia (BMM), which performed its inaugural heavy check in November 2025. A second hangar is scheduled to come on stream in the second half of FY2026/27, lifting total BMM capacity to six concurrent aircraft checks. In June, SIAEC signed a joint-venture agreement with Safran Aircraft Engines to build a full-service CFM LEAP engine MRO shop in Singapore; Safran will hold 51% and SIAEC 49%. Post-quarter-end, the company inked a non-binding memorandum of understanding with Air India to explore an MRO partnership in India.
Looking ahead, SIAEC reiterated confidence in Asia-Pacific MRO fundamentals, citing growing passenger traffic and fleet expansion in the region. Management intends to continue expanding its footprint, add next-generation aircraft capabilities and reinforce its operational core to support sustainable long-term growth and shareholder returns.