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SIA Engineering (SGX:S59)'s 2HFY26/FY26 PATMI rose 20.9%/21.0% y-o-y to S$85.6mil/S$168.9mil, forming 47.8%/94.4% of our FY26e estimates. This was primarily driven by a 22.5% surge in associates and JV income in FY26.
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The positives
(+) Strong associates/JV earnings.
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Share of profits from associates and JV rose 23.3%/22.5% y-o-y to S$74.0mil/S$145.3mil in 2H26/FY26. The engine and component segment was the primary driver, up 23.1% to S$139.2mil. There was 20% higher engine inductions and doubled test facility capacity.
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The negatives
(-) Gestation losses in subsidiaries persist.
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Gestation losses in subsidiaries widened to S$16.1mil in FY26 from S$2.0mil in FY25, weighing on the airframe and line maintenance segment.
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Base Maintenance Malaysia’s Subang heavy check facility commenced in Nov25, with its second hangar not operational until 2H27.
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TIA Engineering's Cambodia line maintenance operations commenced in Sep25, with operations expected to still be below full capacity.
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Outlook
- Read more at SGinvestors.io.
