SIA Engineering closes 3.1% higher on improved H2 earnings, higher dividend

[SINGAPORE] Shares of SIA Engineering Company (SIAEC) rose on Tuesday (May 12) after the Singapore-listed aircraft maintenance provider posted H2 earnings growth.

On Tuesday morning, the counter had climbed as high as S$3.32 as at 9.01 am, up by 4.4 per cent or S$0.14, with 104,400 shares changing hands.

By 10.48 am, it had eased to S$3.24, still up by S$0.06 or 1.9 per cent, with 539,300 shares changing hands.

The counter closed at S$3.28, S$0.10 or 3.1 per cent higher, with over 1.1 million shares exchanged.

The company on Monday posted a 20.9 per cent year-on-year increase in net profit to S$85.6 million for the six months ended Mar 31, on a 3.7 per cent rise in revenue to S$693.9 million.

Its board recommended a final dividend of S$0.085 a share, up from S$0.07 a share a year earlier.

The group also saw “robust demand” for maintenance, repair and overhaul services for the full year, as air travel and passenger traffic continued to rise. The demand helped to boost its full year revenue by 14.3 per cent to S$1.4 billion.

In a report on Tuesday, DBS Group Research noted that SIAEC’s final dividend beat expectations as its core operating profit surpassed its estimate by 14 per cent, with a Q4 FY2026 operating margin at a post-pandemic high of 3.1 per cent.

Earnings drivers for the group remain “intact” as earnings should “continue to be supported by capacity and capability expansion across both subsidiaries and associates (or) joint ventures", said DBS Group Research analyst Jason Sum.

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SIA Engineering raises dividend as ‘robust’ demand drives H2 earnings up 20.9%

In the near term, Sum expects the Iran war to have a moderate impact on SIAEC.

DBS Group Research maintained a “buy” on the stock and kept its S$3.80 target price unchanged.