SATS Ltd. reported first-quarter fiscal 2027 revenue of S$1.68 billion, an 11.3% increase from the same period a year earlier, as the Singapore-based aviation services provider continued to expand across its core segments. The company’s EBITDA rose 5.9% to S$290.0 million, though the EBITDA margin narrowed by 0.9 percentage points to 17.3%, reflecting ongoing cost pressures despite operational improvements.
Net profit attributable to shareholders increased 6.0% to S$75.1 million, while normalized profit came to approximately S$80 million after adjustments. The net profit margin declined 0.2 percentage points to 4.5%. EBIT grew 22% sequentially to S$133.8 million, though the EBIT margin fell 0.3 percentage points to 8.0%. Management noted progress toward long-term financial targets, including EBITDA margin goals exceeding 20% by fiscal 2029.
Revenue growth was led by cargo services, which rose 14.4% to S$893.1 million, accounting for 53% of total revenue. Ground handling revenue increased 9.7% to S$436.2 million, while aviation food revenue edged up 1.1% to S$235.7 million. Non-aviation food revenue surged 16.0% to S$110.3 million. Regionally, the Americas led growth with a 15.4% increase to S$595.8 million, followed by EMEA at 11.7% and Singapore at 8.7%.
Operational volumes reflected broad-based strength. Cargo tonnage climbed 8.6% to 2.59 million tonnes, outpacing IATA’s cargo tonne-kilometer growth of 6.2% for the eighth consecutive quarter. Flights handled rose 4.0% overall, with the Americas up 15.5% and EMEA up 11.3%, while Asia-Pacific declined 5.1%. Meals produced increased 10.9% to 28.9 million, with non-aviation meals up 20.0%. Ship calls handled surged 56.3% to 75.
Financial discipline remained evident, with gross debt to EBITDA steady at 3.3 times, within management’s target of below 3.5 times. The company’s cash balance declined 3.5% to S$726.0 million, while borrowings rose marginally to S$2.39 billion. Operating cash flow after lease payments fell 49.3% to S$23.2 million, and free cash flow turned more negative at S$22.6 million. The cash conversion ratio deteriorated to negative 13.9% from negative 3.0%.
SATS completed a S$61.5 million share buyback from non-controlling interests related to the acquisition of Nanjing Weizhou Airline Food Corporation. The company’s shares declined 1.21% to $4.07 following the results, trading near the midpoint of its 52-week range of $3.17 to $4.96.
