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SIA Engineering (SGX:S59)’s 1QFY27 net profit of S$40.3m (-6.1% y-o-y) was slightly behind our projection, at 22% of our full year forecast. 1QFY27 saw y-o-y lower earnings contribution from engine JVs/associates (down S$7.0m or 19.2% y-o-y), as one of its key engine MRO JVs, Singapore Aero Engine Services, incurred gestation costs for capacity expansion works.
- - Read this at SGinvestors.io -
Fundamentals remain healthy:
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Excluding the cost pass-through effects for raw materials, revenue rose 4.2% y-o-y in 1QFY27, driven by stable MRO demand, and a 2.9% y-o-y growth in SIA Engineering’s Singapore line maintenance business volume. This contrasts with y-o-y lower flight throughput at Changi Airport (down 1.6% y-o-y in Apr-May 26) due to regional carriers’ flight cancellation amid the US-Iran war.
- - Read this at SGinvestors.io -
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Despite lower earnings contribution due to capacity expansion-related gestation costs, engine and component JVs recorded y-o-y higher work volume, with some areas benefiting from higher margin work and new capabilities driving revenue.
Strong balance sheet with sizeable net cash.
- Read more at SGinvestors.io.
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/.
Roy Chen CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2026-07-24
Previous report by UOB:
2026-05-13 SIA Engineering - FY26 Results In Line; Expect Steady Performance In FY27 Amid Stabilised Expansion-related Gestation Costs.
Price targets by 3 other brokers at SIA Engineering Target Prices.
Listing of research reports at SIA Engineering Analyst Reports.
Relevant links:
SIA Engineering Share Price History,
SIA Engineering Announcements,
SIA Engineering Dividend Payout Dates & Corporate Actions,
SIA Engineering News
