SIA Engineering Q1 net profit rises 29.2% to S$42.9 million on strong MRO demand

Aircraft maintenance provider SIA Engineering Company (SIAEC) on Tuesday (Jul 22) reported a net profit of S$42.9 million for the first quarter ended Jun 30, up 29.2 per cent from S$33.2 million in the year-ago period.

The group’s revenue for Q1 FY2026, at S$358.4 million, was 33.4 per cent higher than the S$268.7 million in Q1 FY2025.

Its expenditure rose “at a slightly slower rate” of 32 per cent to S$353.3 million; this came mainly on the back of higher material and manpower costs, said the group in a business update.

SIAEC’s Q1 operating profit thus came up to S$5.1 million.

Earnings per share stood at S$0.0384, up from S$0.0296 for the same period in FY2025.

SIAEC said that, in Q1, it “continued to see higher demand for its maintenance repair and overhaul (MRO) services”.

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During the quarter, it renewed comprehensive services agreements with Singapore Airlines and Scoot to provide “a broad spectrum of MRO services”. These agreements, valued at about S$1.3 billion, took effect on Apr 1, 2025. They cover a term of two years, with an option to extend by an additional year.

Jade Engineering, a subsidiary of SIAEC, also secured a contract for Boeing 777 cabin retrofit services.

SIAEC added in its update that aircraft maintenance check volumes “remained healthy” in Q1.

“The sustained growth in passenger traffic, especially in Asia-Pacific, is expected to continue to drive MRO demand,” the group said.

“However, we remain vigilant to the challenges arising from the broader macroeconomic environment, such as heightened geopolitical tensions, tariff and trade policy developments, and ongoing supply chain issues.”

Shares of SIAEC closed 0.9 per cent or S$0.03 higher at S$3.35, before the results were posted.