SIA Engineering Q1 net profit down 6.1% at S$40.3 million
The group posts lower profits from associated and JV companies, and engine and component segment
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[SINGAPORE] Aircraft maintenance provider SIA Engineering Company on Thursday (Jul 23) reported a net profit of S$40.3 million for the first quarter ended Jun 30, down 6.1 per cent from a year ago.
The group’s revenue for Q1 FY2027, at S$327.6 million, was 8.6 per cent lower year on year due to lower revenue from materials, with a commensurate reduction in the cost of materials.
Excluding materials, however, revenue was up 4.2 per cent year-on-year, the group said in a business update.
Group expenditure declined 11 per cent to S$314.4 million due to lower material and repair costs.
Consequently, the group recorded an operating profit of S$13.2 million, an improvement of S$8.1 million from a year ago.
Earnings per share stood at S$0.036, down from S$0.0384 for the same period in FY2026.
Share of profits from associated and joint venture companies for the quarter was S$31.0 million, down 18 per cent from a year ago.
Share of profits from the group’s engine and component segment fell by S$7 million, or 19.2 per cent, due to investment costs incurred for capacity and capability expansion.
However, this amount was partially offset by higher engine shipments.
Share of profits from the group’s airframe and line maintenance segment was S$200,000 or 14.3 per cent higher due to growth in flight handling volume. The group recorded 2.9 per cent more flights handled in Singapore during the quarter compared to a year ago. This was in spite of flight cancellations from some airline customers arising from the Middle East conflict.
The group said that demand for the group’s maintenance, repair and overhaul services remained stable in Q1. This was despite geopolitical tensions, supply chain constraints and inflationary pressures.
“Given the dynamic operating environment, we continue to focus on operational nimbleness, driving productivity and maintaining rigorous cost discipline across our business units,” said the group.
The counter closed 0.6 per cent or S$0.02 lower at S$3.27 before the update on Thursday.
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