SATS posts 25% EPS growth in Q2 2026 on margin expansion

SATS Ltd. on Friday reported a 25% year-over-year increase in earnings per share for the three months ended Sept. 30, 2025, as margin expansion offset modest revenue growth.

The Singapore-based provider of aviation and food solutions said net profit rose to S$102.4 million ($75.7 million) from S$81.9 million a year earlier, while revenue increased 3% to S$542.7 million. Operating margin widened to 18.9% from 15.6% in the same period last year, reflecting efficiency gains and cost discipline.

The company’s aviation services segment, which handles passenger and cargo operations at Changi Airport, contributed S$321.5 million in revenue, up 4% year-over-year. Food solutions, including in-flight catering and institutional food services, generated S$221.2 million, a 2% increase. Both segments reported higher operating margins, with aviation services expanding to 16.2% from 13.1% and food solutions to 23.5% from 20.8%.

SATS maintained its full-year guidance for revenue growth of 2-4% and net profit growth of 15-20%, citing steady demand in air travel and institutional food services. The company also reaffirmed its dividend policy, targeting a payout ratio of 40-50% of net profit.

Shares of SATS were up 2.1% in Singapore trading on Friday, outperforming the broader market amid positive investor sentiment toward margin-focused industrial services firms.