SIA Engineering has reported full-year FY2025 earnings of $139.6 million, up 43.8% y-o-y. For the 2HFY2024/25, the company reported earnings of $70.8 million, up 87.3% y-o-y.
The group posted a revenue for the FY2025 of $1.245 billion, up 13.8% y-o-y, supported by stable growth in demand for aircraft maintenance, repair and overhaul (MRO) services.
The group’s expenditure for the full year also rose, but at a lower rate of 12.7%, with the increase mainly from higher manpower costs and material usage.
With revenue growth surpassing the increase in expenditure, the group’s operating performance improved $12.3 million y-o-y, from an operating profit of $2.3 million in the last financial year to an operating profit of $14.6 million in this financial year.
The group’s associated and joint venture companies saw a 17.4% y-o-y increase in share of profits to $118.6 million. Profits from the engine and component segment rose 15.8% to $113.1 million, while profits from the airframe and line maintenance segment increased 66.7% to $5.5 million.
In the last financial year, the group exited from the Pratt & Whitney PW1500G engine Risk-Revenue Sharing Programme (RRSP) and made a one-time write-off of $25.1 million in net assets.
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Earnings per share for the year came in 44% y-o-y higher at 12.46 cents.
For the second half of the year, SIA Engineering reported an operating profit of $11.1 million, higher than the $8.9 million reported in the same period a year ago, and higher than the $7.6 million reported in the first half of the year.
The group saw a 15.3% y-o-y growth in revenue for the 2HFY2024/25, and expenditure increased at a slower pace of 13.8% y-o-y.
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The board of SIA Engineering is recommending a final ordinary dividend of 7 cents per share for FY2024/2025.
As at March 31, total assets stood at $2.14 billion, a 2.5% y-o-y increase. The group’s cash balance as at end March was $663.4 million.
On business updates, the company says that healthy air travel demand fuelled the growth in demand for line maintenance services across its network for the year. In Singapore, 8% more flights were handled compared to the previous year, with flight handling volumes in the fourth quarter approaching pre-Covid levels and continuing their upward trend.
There was a steady stream of base maintenance checks in FY2024/25 but these checks required longer hangar stays, on average, compared to the previous year due to a higher proportion of legacy aircraft requiring more extensive work scopes, and in some cases, the delayed completion of the maintenance checks resulting from supply chain issues that impacted the availability of aircraft spare parts.
The group continues to expand its maintenance network with new stations in Indonesia and Japan, and looks to strengthen its presence in India and China.
It says the MRO industry continues to see sustained demand, and impact from higher tariffs on its business if any is currently limited. While there could be potential second-order, indirect effects, which are now difficult to assess, measures are already being put in place to mitigate potential impact of higher tariffs.
Shares in SIA Engineering closed 2 cents higher or 0.885% up at $2.28 on May 9.
