SIA Engineering has reported earnings of $85.6 million for its 2HFY2026 ended March, up 20.9% y-o-y. This brings its full year earnings to $168.9 million, up 21%.
Revenue in the same FY ended March was up 14.2% to $1.42 billion, thanks to "robust" demand for maintenance, repair and overhaul services, in turn, underpinned by stronger air travel.
In Singapore, the number of flights handled for the full year increased by 3.3% compared to a year ago. Flight volumes in the final quarter rose 5.2% year-on-year.
The company plans to pay a final dividend of 8.5 cents per share, which will bring its full year payout to 11 cents. In contrast, a total of 9 cents was paid for the preceding year.
SIA Engineering plans to generate long-term growth by expanding its presence across Asia Pacific, increasing capacity and improving capabilities for next-generation aircraft.
Going forward, SIA Engineering flags that the evolving situation in the Middle East has introduced greater uncertainty, as flight route adjustments, rescheduling and cancellations present business risks.
"Ongoing industry challenges, including supply chain disruptions and inflationary pressures, could be further exacerbated if geopolitical issues are heightened.
"At this stage, the near-term impact on MRO demand is expected to be moderate. The group is closely monitoring developments and actively engaging with customers to seek new revenue opportunities," the company adds.
SIA Engineering shares closed $3.18 on May 11, down 2.45% for the day, extending a drop of 11.17% year to date.
