Singapore-based SATS reported its financial performance for the three months ended 31 March 2025 (4Q FY25) and the full year ended 31 March 2025 (FY25), showing resilient business growth driven by broad-based demand and continued market share gains. The Group has exceeded its integration target of $100M EBITDA synergies well ahead of expectations, reflecting strong integration execution and enhanced operational efficiency.
In 4Q FY25, SATS Group delivered revenue of S$1.48 billion, representing a 10.4% increase compared to the same period last year, driven by continued business volume growth and rate improvements. Gateway Services revenue rose 10.1% year-on-year to S$1.15 billion, reflecting both favourable market conditions and continued market share gains. Our cargo volumes outperformed IATA’s global growth benchmarks, supported by broad-based demand and the redirection of certain ocean freight to air cargo due to ongoing Red Sea disruptions.
Food Solutions revenue increased 11.4% year-on-year to S$331.1 million, propelled by stronger demand for inflight meals amid the continued recovery in global travel.
The Group’s expenditure (excluding depreciation and amortisation) increased 9.1% year-on-year to S$1.22 billion, in line with expanded business volumes. Operating profit for 4Q FY25 rose by S$19.5 million year-on-year to S$108.3 million, with operating profit margin improving from 6.6% to 7.3%. This enhanced performance reflects scale and operational leverage derived from higher business volumes and improved customer rates.
The share of earnings from associates and joint ventures decreased by 30.7% to S$21.4 million year-on-year, partially due to timing differences in expense recognition, with certain non-recurring adjustments from prior periods being reflected in the current quarter.
SATS posted PATMI of S$38.7 million in 4Q FY25, an improvement of S$6.0 million year-on-year, continuing the positive momentum seen in the Group’s operating performance. Non-operating expenses of S$7.9 million were recorded in 4Q FY25, primarily related to strategic portfolio adjustments including impairment charges. FY25 Group revenue increased 13.0% year-on-year to S$5.82 billion, driven by growth in business volumes and contributions from an expanded network of operations.
Gateway Services revenue grew 10.6% year-on-year to S$4.47 billion, reflecting strong air cargo performance across multiple sectors including high-tech shipments and e-commerce. This growth was further supported by volume shifts from ocean freight due to ongoing geopolitical uncertainties. Our cargo volumes have consistently outperformed IATA’s global growth benchmarks, demonstrating our ability to leverage our expanded network to secure new contracts.
Food Solutions delivered revenue of S$1.35 billion, a strong 22.0% increase year-on-year, as global aviation travel continued its recovery trajectory, driving higher demand for inflight meals.
The Group’s expenditure (excluding depreciation and amortisation) increased by 9.5% year-on-year to S$4.78 billion, in line with the expansion in business activities. SATS recorded operating profit of S$475.7 million for FY25, a 94.8% increase from S$244.2 million in the previous year. As a result, operating profit margin expanded from 4.7% to 8.2%, reflecting favourable operating leverage.
The share of earnings from associates and joint ventures grew by 3.9% to S$114.3 million, bolstered by overall business volume growth across our network, a one-off recovery gain for a long outstanding debt in Indonesia, and partially offset by bonus catch-up in several operating units for good performance.
For FY25, SATS delivered PATMI of S$243.8 million, which has increased by more than three-fold compared to S$ 56.4 million in FY24. This strong performance reflects the benefits of increased scale, integration synergies and enhanced operational efficiency across the Group’s expanded business portfolio.
As of 31 March 2025, total equity strengthened to S$2.77 billion, an increase of S$209.4 million compared to 31 March 2024, primarily driven by profits generated during FY25. Total assets rose by S$402.7 million to S$8.88 billion as of 31 March 2025, largely attributable to increased right-of-use assets as the Group expanded its warehouse capacity to support business growth.
Total liabilities increased by S$193.3 million to S$6.11 billion, mainly due to higher lease liabilities, partially offset by the repayment of S$200 million in Singapore dollar Medium Term Notes (SGD MTN) that matured in March 2025. For FY25, operating cash flow after lease repayment strengthened significantly to S$450.0 million, compared to S$137.4 million in the previous year. The Group’s free cash flow1 for FY25 was a positive S$228.3 million, representing a substantial improvement of S$276.5 million year-on-year, primarily reflecting the higher operating profit achieved during the year, balanced with measured financial and liquidity management.
In the fourth quarter alone, SATS generated positive free cash flow of S$155.2 million, an improvement of S$36.7 million year-on-year, further demonstrating the Group’s enhanced cash generation capabilities.
Kerry Mok, President and Chief Executive Officer of SATS, said, “We achieved profitable growth across our business segments in FY25, consistently surpassing industry growth rates. In a time of uncertainty, this performance is a testament to our resilient business model, anchored by a global network with leading, diverse service offerings, and the commitment of our dedicated team. We captured S$103M in EBITDA integration synergies in just two years, driven by the strength of our platform and disciplined execution. Our confidence in sustaining growth is underpinned by long-standing client relationships, and our ability to collaborate effectively to deliver valued services that support their evolving needs. This can be seen through notable customer wins across our network, including multiple new cargo and ground handling contracts secured with key customers such as Air India, Emirates, and DHL in major airports. We delivered on our commitment to reduce leverage and restore profitability, as evidenced by the strong free cash flow generation in FY25. We recently announced a phased investment of over S$250 million for Singapore Hub to upgrade ground operations and cargo handling infrastructure. This reflects our continued focus on operational excellence and our role in strengthening the broader Changi Airport ecosystem. We remain confident in navigating a dynamic landscape and capturing new opportunities in the year ahead.”
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