SATS - UOB Kay Hian 2026-03-02: 3QFY26 Results A Solid Beat; Strong Cargo Performance Demonstrates Resilience Of Global Network

• SATS (SGX:S58)'s 3QFY26 core earnings a solid beat – Reported net profit rose 20.3% y-o-y to S$84.7m in 3QFY26. Adjusted for several one-off items that SATS had back in FY25, 3QFY26 core net profit would have risen 15.6% y-o-y, beating our projected high single-digit core earnings growth.
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• Group revenue rose 8.0% y-o-y in 3QFY26, in line with our expectations.

Strong cargo performance...

• Within the gateway services segment, air cargo revenue rose by a strong 12.2% y-o-y in 3QFY26, driven by:
  1. a 7.3% y-o-y expansion in cargo tonnage (or 10.6% y-o-y on a comparable basis adjusting for some contract model change in the US), and
  2. a 4.6% growth in revenue per tonnage (or 1.4% y-o-y on a comparable basis).
• Ground handling revenue rose by 4.6% y-o-y, driven mainly by ASP increases, while the flight handling volume was largely flattish y-o-y.
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…outpaces IATA data for the ninth consecutive quarter, demonstrating resilience of SATS’ global network.

• SATS’ 7.3% y-o-y cargo tonnage growth in 3QFY26 (10.6% y-o-y on the y-o-y comparable basis) was a clear beat to IATA’s estimated 4.6% y-o-y growth for global air cargo volume, indicating that SATS has been continuously gaining market share in the global air cargo handling market.
• By geography, SATS recorded a strong cargo volume growth in EMEA and APAC, at 16.4% and 10.6% respectively. In North America, SATS’ reported cargo volume dropped 6.9% y-o-y; however, if adjusted for the contract model change, SATS’ North American cargo volume would have risen about 3% y-o-y, outperforming the North America industry average which dropped about 2% y-o-y.

Food solutions segment also posted steady performance.

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Roy Chen CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2026-03-02

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