SIA Engineering H2 net profit up 87.3% at S$70.8 million
SIA Engineering (SIAEC) reported an 87.3 per cent jump in net profit to S$70.8 million for the six months ended March 2025 from S$37.8 million in the same period the previous year.
The mainboard-listed group's revenue for the second half rose 15.3 per cent to S$668.9 million from S$580.2 million in the year-ago period, said its bourse filing on Friday (May 9). Meanwhile, its expenditure rose at a slower pace of 13.8 per cent.
During the period, SIAEC posted an operating profit of S$11.1 million, reflecting an increase of S$8.9 million over the same period last year, and a S$7.6 million gain from the first half of the financial year.
The group's share of profits of associated and joint venture companies rose $9 million year on year, to $60 million. Of this, $56.9 million came from the engine and component segment, and $3.1 million from the airframe and line maintenance segment.
SIAEC's earnings per share came in at S$0.0633 for the second half of the financial year.
For the full financial year, its net profit grew 43.8 per cent to S$139.6 million. It said the increase was supported by stable growth in the demand for aircraft maintenance, repair and overhaul (MRO).
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The group's total revenue for the year increased by 13.8 per cent to S$1.2 billion, from S$1.1 billion. While group expenditure also grew, it rose at a slower pace of 12.7 per cent, with the increase largely due to higher manpower costs and increased material consumption.
With revenue growth outpacing expenditure increases, SIAEC's operating profit improved by S$12.3 million year on year, from S$2.3 million in the previous year to S$14.6 million.
Meanwhile, profits from associated and joint venture companies followed a similar trend of increase in demand, and returned a 17.4 per cent year-on-year increase in share of profits to S$118.6 million.
Profit from the engine and component segment rose 15.8 per cent to S$113.1 million, while the airframe and line maintenance segment saw a 66.7 per cent increase in profit to S$5.5 million.
Meanwhile, SIAEC's exit from the Pratt & Whitney PW1500G engine Risk-Revenue Sharing Programme led to a one-time write-off of S$25.1 million in net assets.
Its earnings per share for the full year came in at S$0.1246.
Future plans
SIAEC's board is recommending a final ordinary dividend of S$0.07 per share for the full year. The dividend amounts to about S$78 million and is subject to approval at the annual general meeting on Jul 22.
If approved, the dividend will be paid on Aug 12. When combined with the interim dividend of S$0.02 per share paid earlier, the total dividend payout for the year will amount to S$0.09 per share, up from S$0.08 per share in the previous year.
The company said that it observed robust demand for air travel, which drove growth in line maintenance services across its network.
In Singapore, the group handled 8 per cent more flights than the previous year, with flight volumes in the fourth quarter approaching pre-Covid levels and continuing to rise steadily, it added.
SIAEC also noted a steady stream of base maintenance checks during FY2024/25. However, these checks required longer hangar stays on average compared with the previous year.
This was due to a higher proportion of legacy aircraft needing more extensive work, as well as delays caused by supply chain issues that affected the availability of aircraft spare parts.
At the same time, the group's engine and component shops achieved a higher output in repairs and overhauls during the year.
To meet growing demand, SIAEC expanded its engine test capacity by streamlining rosters to allow for extended work shifts. The company added that it is on track to enhance its testing capabilities for the CFM Leap-1B engine.
The group anticipates continued strong demand in the MRO industry. While it noted that the direct impact of higher tariffs on the business has been minimal so far, it acknowledges the possibility of second-order, indirect effects.
It added that although the potential impact of higher tariffs are difficult to assess at this stage, the group has implemented measures to mitigate any future risks associated with higher tariffs.
'We are closely monitoring geopolitical developments, changes in trade policies and industry trends, including air travel demand and aircraft fleet utilisation, to look out for emerging risks and opportunities,' it noted.
Shares of SIAEC ended Friday S$0.02 or 0.9 per cent higher at S$2.28, before the announcement.
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