Singapore-based SATS Ltd reported first-quarter revenue of $1.68 billion for the three months ended June 2026, an 11.3% increase from the same period a year earlier. Profit after tax and minority interests rose 4.3% to SGD 75.1 million, while normalized profit reached approximately SGD 80 million after excluding one-off joint-venture provisions and other items.
EBITDA advanced 6% year-over-year, lagging revenue growth as operational costs weighed on margins. Chief Executive Officer Kerry Mok cited geopolitical disruptions in the Middle East as a driver of cargo rerouting through SATS’ network, which pushed cargo volume to 2.59 million tons, up 8.6% from the prior year. Food-service operations also expanded, with non-aviation meals rising 20% as new central kitchens in Tianjin, India, and Noida near Delhi scaled up production.
Margins faced pressure from early-stage input cost inflation in food operations and the need to rapidly redeploy staff across locations to handle rerouted cargo flows. EBITDA growth was further constrained by provisions tied to joint ventures affected by cancellations from low-cost carriers. Despite these headwinds, return on equity improved to 10.8% from the prior year.
Management reaffirmed confidence in its fiscal 2029 margin targets, pointing to levers available to manage costs. Timothy Tang, Chief Financial Officer, noted that excluding one-off items, adjusted profit after tax and minority interests would have been closer to SGD 80 million. Revenue growth was attributed largely to the translation of higher cargo volumes, with SATS capturing rerouted airfreight amid geopolitical shifts.
The company highlighted new and renewed contracts, including a Qatar Airways win with Amsterdam operations slated for the second quarter, a renewal with China Airlines across North America, and the start of catering services in Noida. Key customer renewals were secured with British Airways, Air France, and KLM in Singapore. SATS also advanced its strategic initiatives, including a collaboration with Marsi Life Sciences Laboratory on sustainable food technologies and recognition awards such as the Red Dot Design Award and Best Air Cargo Terminal Operator by Air Cargo World.
SATS’ stake in Nanjing Weizhou Airline Food Corp., Ltd. increased to 90% following the purchase of an additional 40% interest. The company’s shares fell 1.21% to $4.07, trimming earlier gains and leaving the stock about 18% below its 52-week high of $4.96.
