SIA Engineering announces full year results

11 May 2026

• Full-year Group net profit rose 21% to $168.9M - the highest since the COVID-19 pandemic
• The Group is well-positioned to drive sustainable long-term growth and financial performance through investments in geographical, capability and capacity expansion, and strengthening its core services

  	Full Year	Year-on-Year	2nd Half	Year-on-Year
  	FY2025-26	Change	FY2025-26	Change
  	$'M	$'M %	$'M	$'M %
  Revenue	1,422.9	+177.8 +14.3	693.9	+25.0 +3.7
  Operating profit	29.4	+14.8 +101.4	16.4	+5.3 +47.7
  Share of profits of associated and joint venture companies, net of tax	145.3	+26.7 +22.5	74.0	+14.0 +23.3
  Profit attributable to owners of the parent	168.9	+29.3 +21.0	85.6	+14.8 +20.9
  Basic earnings per share (cents)	15.09	+2.63 +21.1	7.64	+1.31 +20.7

• Proposed final dividend of 8.5 cents per share HIGHLIGHTS OF THE GROUP'S PERFORMANCE

Financial Year 2025-26

Driven by robust demand for maintenance, repair and overhaul ("MRO") services, the Group's revenue for the financial year ended 31 March 2026 grew 14.3% year-on-year to $1,422.9 million. Revenue rose from a combination of higher labour rates, higher flight volumes, increase in maintenance activity, heavier aircraft check content and more engines and components delivered.

Group expenditure also increased, but at a lower rate of 13.2%, mainly from setup costs for two new subsidiaries and higher costs for manpower, material, outhouse repair and IT system implementation, and a $4.0 million impairment provision for an underperforming long-term contract.

Consequently, the Group's operating profit improved by $14.8 million (i.e. 101.4%) to $29.4 million.

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The Group's associated and joint venture companies also saw strong demand, turning in a 22.5% year-on-year increase in share of profits to $145.3 million. Profits from the engine and component segment rose by 23.1% to $139.2 million, supported by higher engine shipments and improved profit margins.

Profits from the airframe and line maintenance segment increased by 10.9% to $6.1 million mainly due to growth in flight handling volume.

The Group posted a net profit of $168.9 million for the financial year ended 31 March 2026, $29.3 million higher year-on-year.

Basic earnings per share stood at 15.09 cents for the financial year, 21.1% higher year-on-year. Second Half FY2025-26

The Group generated an operating profit of $16.4 million in the second half of the financial year, representing an improvement of $5.3 million over the same period last year and $3.4 million over the first half. Revenue increased 3.7% year-on-year, while expenditure rose at a lower rate of 3.0%.

Share of profits of associated and joint venture companies improved by $14.0 million year-on-year, to

$74.0 million. Of this, $70.6 million came from the engine and component segment and $3.4 million from the airframe and line maintenance segment.

The Group net profit for the second half of the financial year ending 31 March 2026 was $85.6 million, 20.9% higher than the same period last year.

Basic earnings per share for the period was 7.64 cents.

As of 31 March 2026, equity attributable to owners of the parent was $1,755.4 million. This was $35.0 million (+2.0%) higher than the position as of 31 March 2025, mainly due to profits earned during the year, partially offset by a decrease in the foreign currency translation reserve and dividends paid.

Total assets stood at $2,270.8 million as of 31 March 2026, an increase of $129.4 million (+6.0%) from 31 March 2025. The Group's cash balance was $564.8 million.

Net asset value per share as of 31 March 2026 was 156.9 cents.

The Board is recommending a final ordinary dividend of 8.5 cents per share for FY2025-26.

Payment of the final dividend, which amounts to approximately $95.1 million, is subject to shareholders'

approval at the Annual General Meeting on 23 July 2026. The dividend will be paid on 14 August 2026.

Together with the interim dividend of 2.5 cents per share paid earlier, the total dividend payout for FY2025-26 will be 11.0 cents per share. For FY2024-25, the dividend payout was 9.0 cents per share.

Air travel and passenger traffic continued to trend upward over the past financial year, driving demand for MRO activities. 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 Group remained focused on its ongoing strategy to drive sustainable long-term growth and financial performance through investments in three key areas: (a) expanding its presence across Asia-Pacific,

(b) increasing capacity and enhancing MRO capabilities for next-generation aircraft, and (c) strengthening core services to build operational resilience, agility and competitiveness.

Expanding Geographical Presence

Our line maintenance network continued to expand during the year. Our subsidiary, TIA Engineering Services, commenced operations at the new Techo International Airport in Cambodia in September 2025. In January 2026, SIA Engineering (Philippines) Corporation extended its line maintenance services to Manila.

In China, the Group signed agreements in March 2026 to acquire a 30% stake in the enlarged share capital of Arport Aircraft Maintenance & Engineering (Fujian) Co., Ltd. and form a joint venture. This MRO joint venture will perform line maintenance and ground services at airports in Xiamen, Fuzhou, Wuyishan and Longyan, and will provide line and base maintenance services at the upcoming Xiamen Xiang'an airport which is expected to commence operations by the end of 2026.

Scaling Capacity and MRO Capabilities for Next-Generation Aircraft

In Malaysia, Base Maintenance Malaysia ("BMM") began operations at its first hangar in November 2025. Its second hangar is expected to become operational in the second half of FY2026-27, which will further expand the Group's airframe check capacity. BMM's first cohort of 55 trainee technicians graduated from its Technician Trainee Programme in March 2026, strengthening its aerospace workforce pipeline.

Amongst our joint venture companies, Turbine Coating Services ("TCS") is expanding its coating capabilities to support Pratt & Whitney's Geared Turbofan engine platform. The new capability is expected to be operationally ready in 2027 and will enhance TCS's product portfolio. Asia Pacific Aircraft Component Services in Malaysia added Honeywell's Air Data Inertial Reference Unit to its component repair capabilities.

Safran Landing Systems Services Singapore is expanding to a new facility to increase MRO output of aircraft landing gears by almost 40%. Singapore Aero Engine Services Limited is also on track to complete its planned capacity expansion at its Loyang and Seletar sites by FY2026-27, which will significantly increase output capacity from around 300 to 400 or more engines per annum and add advanced repair capabilities.

In November 2025, SIAEC signed a Letter of Intent with Safran Aircraft Engines to broaden its partnership in CFM LEAP ("LEAP") engine maintenance services. Both parties will jointly explore options to expand the existing scope of services in our commercial agreement, including the potential formation of a joint venture for LEAP engine MRO in Singapore.

Strengthening our Core Business

Meanwhile, SIAEC is continuing to roll out its new Enterprise Operating System across more business units, while further integrating Lean methodologies, digital and Artificial Intelligence ("AI") tools to drive efficiency improvements. Through continually upgrading our digital capabilities and fostering a culture of continuous improvement throughout the organisation, we are strengthening our foundation to bolster our operational resilience, agility and competitiveness.

Industry Recognition

Our continued efforts to harness technology to transform our core MRO operations and strengthen both operational and support functions were recognised at the Singapore Business Review Technology Excellence Awards 2026. Our initiative, "Making Operations and Support Functions Intelligent through AI", won the 'AI - Aviation' category award.

The Company was recognised as one of the top 50 ASEAN Public Listed Companies at the ASEAN Corporate Governance Conference and Awards 2025. SIAEC was also the joint winner of the Singapore Corporate Governance Award 2025 (Big Cap category) presented by the Securities Investors Association (Singapore).

The evolving situation in the Middle East has introduced greater uncertainty, as flight route adjustments, rescheduling and cancellations present business risks for the Group. 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. We are prepared to respond nimbly to changing circumstances by leveraging our diversified network, strong customer relationships and operational resilience to mitigate potential disruptions. At the same time, we will continue to maintain a disciplined approach to cost management, particularly in light of rising energy costs amid the Middle East conflict.

To deliver greater value to our stakeholders, the Group remains focused on its strategic priorities, namely (a) expanding its presence across Asia-Pacific, (b) increasing capacity and enhancing MRO capabilities for next-generation aircraft, and (c) strengthening core services to build operational resilience, agility and competitiveness. The Group will continue to pursue strategic investments that support long-term growth, while advancing digitalisation and deepening the use of AI across its

operations. We will continue to foster a culture of continuous improvement across the organisation, with safety and quality maintained as the highest priorities.

End

(For the complete FY2025-26 financial statements, please refer to our SGXNET filing or the Investor Relations page of our website at https://www.siaec.com.sg.)

Tan May Lyn Manager Corporate

SIA Engineering Company Limited Tel: (65) 6548 1157

E-mail: maylyn_tan@singaporeair.com.sg

Company Registration No: 198201025C