- SIA Engineering (SGX:S59) reported FY25 core net profit of S$140.2mil, up 15.7% y-o-y, broadly in line with DBS Group Research’s forecast of S$142mil and the street’s estimate of S$143mil.
FY25 results supported by strong operating leverage and associate contributions.
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- Demand for engine MRO services remained robust, providing continued support to earnings across both consolidated operations and equity-accounted entities.
Top-line growth remains healthy with sequential margin recovery in base and line maintenance.
- Revenue growth accelerated to 15.3% y-o-y in 2HFY25, up from 12.1% in 1HFY25, driven by an 8% increase in flights handled and a shift toward heavier maintenance workloads. Although ‘A’ checks fell 13.9% h-o-h and 20.4% y-o-y, ‘C’ checks rose 27.3% h-o-h and declined only 4.5% y-o-y, reflecting a heavier mix of legacy aircraft such as the A380 that require more extensive work scopes.
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- Staff costs have stabilised with normalised attrition, though subcontractor costs rose following the renewal of a 3-year vendor contract early in FY25.
Associates and joint ventures delivered strong growth, led by SAESL and ESA.
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