SATS' 1QFY26 PATMI soared 9.1% y-o-y to S$70.9mil, outperformed our expectation at 30% of our FY26e forecast underpinned by strong cargo demand from front-loading activities. Cargo tonnage reached 2.4mil (+10.4% y-o-y), flight movements totalled 158.8k (+2.6%YoY), and aviation meal production grew to 16.4mil (+5.6%YoY).
- Read this at SGinvestors.io -
The Positives
Cargo demand supported by front-loading activities.
Gateway Services revenue reached S$1.18bn, an 11.2% y-o-y increase. This growth was fueled by portfolio expansion, following new contracts with key carriers such as Cathay Cargo, Cathay Pacific, and Emirates SkyCargo.
- Read this at SGinvestors.io -
While the US cargo market softened as expected, with volumes dropping q-o-q, SATS mitigated losses by securing orders from domestic express services (DHL, UPS, Amazon), offsetting the impact from the cancellation of the De Minimis Exemption.
Resilient margin despite tariff uncertainties.
Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
Use Trust referral code PGKPSWAE to sign up NTUC Link or Trust Link Credit Card or open a Trust Bank Savings Account: ✨Earn up to S$1,000 cashback rewards 🎟!
