SIA Engineering Company Limited Reports Strong H1 FY2025-26 Results and Declares 2.5 Cents Interim Dividend Payable on 28 November 2025 21430

SIA Engineering Company Limited: H1 FY2025/26 Financial Analysis

SIA Engineering Company Limited (“SIAEC”) has released its condensed interim financial statements for the half year ended 30 September 2025. The results highlight strong operational performance, robust demand for maintenance, repair and overhaul (MRO) services, and continued strategic expansion in the Asia-Pacific region. This analysis summarizes key financial metrics, compares performance periods, and assesses outlook for investors.

Key Financial Metrics

Metric	H1 FY2025/26 (Current Period)	H2 FY2024/25 (Previous Half)	H1 FY2024/25 (Same Period Last Year)	YoY Change	QoQ Change
Revenue	\$729.0M	\$X	\$576.2M	+26.5%	n/a
Operating Profit	\$13.0M	\$X	\$3.4M	+277%	n/a
Net Profit (Owners)	\$83.3M	\$X	\$68.8M	+21.1%	n/a
Basic EPS (cents)	7.45	X	6.13	+21.5%	n/a
Interim Dividend (cents/share)	2.5	X	2.0	+25%	n/a
Net Asset Value / Share (cents)	151.4	153.9	146.2	+3.5%	-1.6%

Note: Some QoQ values are not available due to reporting structure. “X” denotes unavailable data.

Historical Performance & Trends

Revenue Growth: Robust double-digit growth in revenue driven by strong demand in both airframe/line maintenance and engine/component segments.
Profitability: Operating profit tripled year-on-year, with net profit up by over \$14.5 million.
Share of Profits: Associated and joint venture companies contributed \$71.3 million (+21.7% YoY), mainly from engine and component segment.
Dividend Payout: Interim dividend raised to 2.5 cents/share (+25% YoY).
Net Asset Value: Slightly down QoQ due to dividend payments and foreign currency translation losses, but up YoY.

Exceptional Earnings & Expenses

Provision for Onerous Contract: \$4.0 million impairment for an underperforming contract recognized in the period.
IT System Investment: Expenses increased due to Enterprise Operating System deployment and digital transformation initiatives.

Share Buybacks and Equity Changes

Treasury Shares: 830,800 shares repurchased during the period at prices between \$3.07 and \$3.10, totaling \$2.57 million.
Share Awards: 2,118,743 treasury shares transferred to employees upon vesting of Restricted and Performance Share Plans.
No dilution: No change in issued share capital, and no subsidiary holdings reported.

Dividends

Final Dividend: 7.0 cents/share paid in respect of FY2024/25.
Current Interim Dividend: 2.5 cents/share, payable on 28 November 2025.

Related Party Transactions

Large Transactions: \$2.48 billion in aggregate value, mainly with Singapore Airlines Group and related entities, all conducted on normal commercial terms.

Business Update & Outlook

The Group continues to experience healthy demand for MRO services. Line maintenance in Singapore saw a 2.6% increase in flights handled YoY, and base maintenance benefited from more heavy checks. New comprehensive agreements with Singapore Airlines and Scoot commenced on 1 April 2025, valued at \$1.3 billion for two years. Operations expanded to the new Techo International Airport in Phnom Penh via a joint venture, and component/engine MRO output increased due to operational improvements and new capabilities.

SIAEC received industry recognition as one of the top 50 ASEAN Public Listed Companies for corporate governance. Management continues to focus on expanding regional presence, next-generation aircraft MRO capabilities, and enhancing operational agility.

Chairman’s Statement (Tone: Positive)

“Travel demand and passenger traffic growth continue to underpin MRO demand. While the operating environment is still subject to risks from heightened geopolitical and trade tensions, as well as persistent supply chain issues, the Group remains vigilant to the headwinds and continues to closely manage these risks and position for long-term growth. Our strategic priorities continue to be focused on expanding our presence in Asia-Pacific, expanding capacity and MRO capabilities for next-generation aircraft, and enhancing our core services to build operational resilience, agility and competitiveness, to deliver greater value to our customers and stakeholders.”

Conclusion & Recommendations

Overall Assessment: The financial and operational performance for H1 FY2025/26 is strong. Revenue and profit growth are robust, profitability has improved, dividend payouts have increased, and the Group maintains a healthy balance sheet. Strategic expansion and operational improvements position SIAEC for further growth, though management acknowledges ongoing macroeconomic and geopolitical risks.

Recommendations for Investors

If you currently hold SIAEC stock:
- Given the strong financial performance, expanding contracts, and positive outlook, consider maintaining your position. The increased interim dividend and operational resilience are supportive of shareholder returns.
If you do not currently hold SIAEC stock:
- SIAEC may merit consideration for portfolio addition given its earnings momentum, regional expansion, and attractive dividend yield. However, monitor for ongoing macroeconomic and supply chain risks, as well as foreign exchange volatility.

Disclaimer: This analysis is based solely on the information provided in SIAEC’s H1 FY2025/26 financial report and does not constitute investment advice. Investors should consider their own risk profile and seek professional advice before making investment decisions.