SATS FY26 - UOB Kay Hian 2026-05-28: Core Earnings Beat Expectations; Strong Fundamentals Despite Short-Term Volatilities

• SATS (SGX:S58)’s FY26 headline net profit of S$285.2m (+17.0% y-o-y) came in broadly in line, at 98%/99% of our and consensus estimates. However, excluding non-recurring items, SATS’ core net profit would have been S$300.8m (+15.6% y-o-y), outperforming our estimate by 3.5%.

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Revenue growth across all segments.

• Revenue from the gateway services and food solutions segments grew 10.8% and 2.9% y-o-y, respectively, in FY26.

Gateway services:

• Air cargo revenue rose 11.8% y-o-y, driven by:

  1. a 7.0% y-o-y cargo tonnage growth (or 9.2% y-o-y on a comparable basis, adjusting for changes in certain US contract models); and
  2. - Read this at SGinvestors.io -

  . Ground handling revenue grew 9.1% y-o-y, supported by a 3.2% y-o-y growth in flight volumes and 5.7% higher ASP.

Food solutions:

• Aviation food revenue increased 2.8% y-o-y, primarily driven by a 4.1% y-o-y growth in meal volumes. Non-aviation food revenue rose 3.2% y-o-y, supported by 2.1% higher meal volumes and a 1.0% ASP growth.

Cargo volume has outpaced industry benchmarks for 10 consecutive quarters, underscoring the strength of SATS’ global network.

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Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Previous report by UOB:
2026-03-02 SATS - 3QFY26 Results A Solid Beat; Strong Cargo Performance Demonstrates Resilience Of Global Network.

Price targets by 4 other brokers at SATS Target Prices.

Listing of research reports at SATS Analyst Reports.

Relevant links:
SATS Share Price History,
SATS Announcements,
SATS Dividend Payout Dates & Corporate Actions,
SATS News