At the time, concerns centred on valuation and execution risk. The WFS purchase price represented about 56% of Sats’ market capitalisation in 2022, raising questions about balance-sheet strain and shareholder dilution.
Paris-based WFS, which had changed hands among three private equity owners over 16 years, carried an enterprise value of about EUR2.25 billion ($3.38 billion), translating into an EV/Ebitda multiple of 9.7 times.
For Sats, whose share price fell from over $5.40 in July 2019 to a pandemic-driven low of $2.70 in March 2020, the acquisition, for a company still emerging from the depths of the pandemic, was widely viewed as bold at best and somewhat risky.
More than three years on, following the integration of WFS and a branding refresh, this narrative has been quietly but decisively changing.
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Sats’ most recent results indicate a group that has not only absorbed the WFS acquisition but is now extracting value from it. In 2QFY2026 ended Sept 30, 2025, the group reported earnings of $78.9 million, up 13.3% y-o-y. Earnings in 1HFY2026 rose 11.2% y-o-y to $149.8 million, underpinned by steady growth across its aviation and cargo segments.
Revenue momentum has been equally robust. 2QFY2026 revenue grew 8.4% y-o-y to $1.57 billion, while 1HFY2026 revenue increased 9.1% y-o-y to $3.08 billion.
This growth also translates into balance sheet strength, with total equity as at the end of September 2025 standing at $2.9 billion, supported by profits generated during the half year. Total assets amounted to $8.89 billion, while total liabilities declined to $5.99 billion, reflecting lower trade payables and the repayment of $100 million in Singapore dollar medium-term notes in April of the same year.
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As a result, the group’s board declared an interim dividend of 2 cents per share.
On an operational basis, the opening of a new e-commerce and freight-forwarding facility at Copenhagen Airport and the ramp-up of services for new customers, including Emirates SkyCargo and eDirect Transport at Frankfurt Cargo Service, spell continued business.
Some analysts have thus gradually come to believe in the stock. In a Feb 5 report, DBS Group Research analysts Yeo Kee Yan and Foo Fang Boon have placed Sats on “positive watch” with a “buy” call and a target price of $4.40, noting that investors may be underestimating Sats’ earnings potential amid lingering tariff concerns.
Continued gains in global wallet share and resilient air cargo volumes support their increased optimism and higher earnings forecast. “Risk-reward remains attractive, with the stock trading at –1 standard deviation (s.d.) forward P/E, which appears undemanding relative to its growth outlook,” note the DBS analysts.
In another signal of reaffirmation, on Jan 12, Temasek-owned Fullerton Fund Management paid an average of $3.82 per share for 330,000 Sats shares, which brings its stake to 0.28% of the company. With this, Temasek’s total interest in Sats, via its various other holdings, has increased from 39.9% to 40.01%.
Evidently, the trade war did little to dent global air cargo. IATA projects cargo volume to grow 2.6% this year, reasoning that “in times of uncertainty, when speed matters most, air freight remains the preferred option”.
Meanwhile, tourist numbers to the US may have dropped, but travel elsewhere continues. This year, Asia-Pacific passenger volume, measured by revenue passenger kilometres (RPK), is expected to jump 7.9%, with global growth at an equally respectable 4.9%. In this, Sats will play a key role.
