Singapore-based SATS Ltd. reported a 20.4% surge in third-quarter net profit bolstered by record-high cargo volumes and expanding margins across its global aviation and food services network. The Singapore-listed ground handler and airline caterer posted a profit attributable to owners of the company (PATMI) of S$70.4 million in the same period a year earlier. The results reflect the company’s ability to capitalise on seasonal peak demand and shifting global trade flows despite persistent geopolitical uncertainties.
Group revenue for the third quarter rose 8.0% year-on-year to S$1.65 billion. The growth was primarily spearheaded by a robust performance in the cargo sector, which saw volumes hit record levels during the period. Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew at a faster clip than revenue, rising 12.8% to S$297.7 million. This resulted in an EBITDA margin expansion to 18.1%, up from 17.3% in the prior year.
SATS President and Chief Executive Officer Kerry Mok attributed the performance to “operating leverage from increased volume and sustained progress in operational efficiency”. The company managed to keep expenditure growth at 7.0%, trailing the 8.0% revenue increase, which signalled improved cost discipline across its 27-country footprint.
The company’s cargo operations emerged as the standout performer. SATS processed 2.55 million tonnes of cargo in the third quarter, a 7.3% increase year-on-year. Growth was particularly sharp in the Europe, Middle East, Africa, and Asia (EMEAA) region, where cargo volumes jumped 16.4%. “We delivered strong third-quarter performance with record-high cargo volume driven by seasonal peak demand, marking our ninth consecutive quarter outperforming industry benchmarks,” Mok said in a statement.
The company’s global network, significantly expanded following the 2023 acquisition of Worldwide Flight Services (WFS), has allowed it to capture trade flow shifts as businesses navigate tariff policy uncertainties. Recent contract wins have further deepened this footprint, including new cargo and ramp agreements in Paris with China Cargo, multi-station awards across Europe and the Americas with Saudia Cargo, and a catering contract with Turkish Airlines.
Looking ahead to the final quarter of the fiscal year — traditionally a softer period for the industry — SATS remains optimistic. While the International Air Transport Association (IATA) forecasts a modest industry growth of 2.4% to 2.6% for 2026, SATS expects to continue gaining market share. “We remain confident in our ability to deliver sustainable profitable growth through operational excellence, customer service quality, and strategic capital deployment,” the company stated in its outlook.
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