Admittedly, FY26F will be a tough year for SATS, but we view it as a transitory and believe investors should focus on the more normalised earnings profile expected in FY27F.
4QFY25 core net profit met expectations.
- Read this at SGinvestors.io -
Adjusting for these, FY25 headline net profit would have reached S$249.5mil (+332% y-o-y), meeting DBS’ and beating the street’s. Meanwhile, SATS's full-year core net profit of ~S$261mil was in line.
FY25 top-line slightly above expectations.
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Ground handling revenue was flat y-o-y despite a 5.8% y-o-y rise in flights handled, as revenue per flight was distorted by last year’s spike in volumes tied to major events (e.g. Taylor Swift and Coldplay concerts).
The food solutions segment posted strong revenue growth of 11.4% y-o-y in 4QFY25, supported by a 9.3% y-o-y increase in aviation meal volumes and an 11.8% y-o-y rise in aviation food ASPs.
Segmental performance was mixed.
Read more at SGinvestors.io.
Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
