SIA Engineering grows 20.9% in H2 on regional expansion drive

Its revenue increased 14.3% to $1.42b driven by stronger MRO demand.

SIA Engineering Group reported a 20.9% increase in net profit to $85.6m for the second half of the financial year (FY) ended 31 March, according to its financial report.

A 3.7% increase in revenue to $693.9m supported the growth, alongside a 3.0% rise in expenditure.

The board proposed a final dividend of 8.5 cents per share, bringing the total dividend for FY2025–26 to 11.0 cents per share, compared with 9.0 cents in the previous year.

Basic earnings per share rose to 15.09 cents for the full year from 12.48 cents a year earlier.

For the full year, group revenue rose 14.3% to $1.42b, supported by stronger demand for maintenance, repair, and overhaul services, alongside higher air traffic.

Full-year net profit rose 21% to $168.9m, whilst share of profits from associated and joint venture companies increased 22.5% to $145.3m.

Engine and component operations contributed $139.2m, whilst airframe and line maintenance contributed $6.1m.

Group expenses rose 13.2% due to setup costs for two subsidiaries, higher manpower and material costs, IT system implementation, and a $4m impairment provision linked to an underperforming contract.

The group expanded its line maintenance network during the year, including operations at Techo International Airport in Cambodia and services in Manila.

It also signed agreements to acquire a 30% stake in an aircraft maintenance joint venture in Fujian, China.

The group said it continues to invest in digital systems, artificial intelligence tools, and operational processes to improve efficiency across its maintenance operations.

It said it expects geopolitical developments in the Middle East to affect flight routing and scheduling, but added that near-term impact on maintenance demand should remain moderate.