Skyway Aviation’s nine-month pre-tax profit declines 22.13% to N8.08 billion

Skyway Aviation Handling Company Plc (SAHCO) has released its unaudited financial results for the nine months ended September 30, 2026, reporting a pre-tax profit of N8.08 billion, representing a 22.13% decline from N10.38 billion in the corresponding period of 2025.

For the nine-month period, revenue increased by 8.15% to N34.26 billion from N31.68 billion. However, higher direct costs and administrative expenses weighed profitability, reducing profit after tax by 36.65% to N5.33 billion, while earnings per share declined to 394 kobo from 622 kobo.

However, third-quarter performance improved significantly, with pre-tax profit increasing to N2.33 billion from N419.98 million in Q3 2025, representing a 455.32% increase.

Key Highlights

• Revenue: N34.26 billion (Up 8.15% YoY from N31.68 billion).
• Passenger handling and related services: N24.48 billion (Up 4.60% YoY from N23.40 billion).
• Import cargo handling: N8.20 billion (Up 24.60% YoY from N6.58 billion).
• Export cargo handling: N1.58 billion (Down 6.60% YoY from N1.69 billion).
• Gross profit: N17.89 billion (Up 1.48% YoY from N17.63 billion).
• Direct costs: N16.37 billion (Up 16.54% YoY from N14.04 billion).
• Administrative expenses: N10.09 billion (Up 36.00% YoY from N7.42 billion).
• Operating profit: N8.32 billion (Down 20.91% YoY from N10.52 billion).
• Total assets: N87.79 billion (Up 6.17% from N82.69 billion as of December 2025).
• Cash and cash equivalents: N5.50 billion (Up 12.52% from N4.88 billion).

Driving the numbers

Skyway Aviation’s nine-month earnings decline was driven by rising operating costs and administrative overheads, which outpaced revenue growth despite stronger contributions from passenger handling and import cargo services.

• Revenue increased by 8.15% to N34.26 billion, with passenger handling and related services remaining the company’s largest revenue source.
• Passenger handling revenue increased by 4.60% to N24.48 billion from N23.40 billion, accounting for approximately 71.45% of total revenue.
• Import cargo handling recorded stronger growth, increasing by 24.60% to N8.20 billion from N6.58 billion, contributing 23.93% of total revenue.
• However, export cargo handling revenue declined by 6.60% to N1.58 billion from N1.69 billion, accounting for the remaining 4.62%.

Despite the increase in revenue, direct operating costs rose faster, increasing 16.54% to N16.37 billion from N14.04 billion.

• The increase was driven partly by higher direct labour costs, which rose by 52.81% to N3.92 billion from N2.57 billion.
• Depreciation charged to direct costs also increased by 48.06% to N2.18 billion from N1.47 billion, while concession fees rose to N1.67 billion from N1.55 billion.

These cost increases reduced the benefits of revenue growth, leaving gross profit at N17.89 billion, an increase of just 1.48% from N17.63 billion.

Consequently, the gross profit margin declined to 52.23% from 55.67% in the corresponding period of 2025.

• Administrative expenses added further pressure, increasing by 36.00% to N10.09 billion from N7.42 billion.
• Employee benefit expenses accounted for a significant portion of the increase, rising by 78.72% to N3.94 billion from N2.21 billion.

Although other operating income increased by 69.51% to N515.96 million from N304.38 million, it was insufficient to offset the increase in expenses.

• Consequently, operating profit declined by 20.91% to N8.32 billion from N10.52 billion.

On the financing side, finance income increased by 225.66% to N264.58 million from N81.25 million, supported by higher interest income.

• However, finance expenses increased by 127.62% to N500.73 million from N219.98 million, reflecting higher interest costs on borrowings.

This resulted in a net finance expense of N236.15 million, compared with N138.74 million in the corresponding period of 2025.

• As a result, pre-tax profit declined by 22.13% to N8.08 billion from N10.38 billion.
• Income tax expenses also increased by 40.23% to N2.75 billion from N1.96 billion, further reducing bottom-line earnings.

Profit after tax consequently declined by 36.65% to N5.33 billion from N8.42 billion, while earnings per share fell to 394 kobo from 622 kobo.

Balance sheet

Total assets increased by 6.17% to N87.79 billion as of September 2026, from N82.69 billion at December 2025, driven primarily by investment in property, plant and equipment.

• Property, plant and equipment increased by 17.98% to N57.25 billion from N48.53 billion, supported by additions to plant and machinery.
• Meanwhile, trade and other receivables declined by 20.97% to N16.07 billion from N20.33 billion, while cash and cash equivalents increased by 12.52% to N5.50 billion.

On the funding side, total borrowings stood at N3.97 billion, compared with N3.85 billion as of December 2025.

• Shareholders’ equity increased by 5.08% to N65.37 billion from N62.21 billion, supported by retained earnings.

On the cash flow side, net operating cash flow improved by 42.99% to N13.74 billion from N9.61 billion, although the company spent N11.60 billion on property, plant and equipment during the period.

Market reaction

Skyway Aviation shares closed at N171.20 on Friday, October 30, 2026, unchanged from the previous trading session.

The stock has gained 93.56% year-to-date from its opening price of N88.45, placing it among the stronger-performing equities on the Nigerian Exchange.

On a month-to-date basis, the shares remained unchanged at N171.20, representing a 0.00% return for October.

The stock also closed unchanged at N171.20 on October 29, following the release of the financial statements.

During the nine-month period, the company paid N1.62 billion in dividends to shareholders, compared with N812.15 million in the corresponding period of 2025. No fresh Q3 interim dividend was declared in the financial statements.