Executive Summary
Skyway Aviation Handling Company Plc delivered a robust financial performance for the nine months ended September 30, 2025, achieving significant growth in turnover and profitability driven by strong aviation handling demand, enhanced operational efficiency, and capacity expansion efforts. Revenue surged 57% YoY to ₦31.7 billion, supported by higher passenger handling, cargo processing volumes, and stronger pricing across aviation support services. Profit Before Tax accelerated 86% YoY to ₦10.38 billion, reflecting strong operational leverage and disciplined cost control. Profit After Tax nearly doubled, rising 82% YoY to ₦8.42 billion. Earnings Per Share improved to ₦6.22 (622 kobo), demonstrating enhanced shareholder value creation. Balance sheet strength improved meaningfully, with total assets expanding 27% YoY to ₦53.0 billion, supported by strategic investment in ground support equipment and infrastructure to support higher service throughput.
Financial Highlights – Statement of Profit or Loss
₦’000 Q3 2025 Q3 2024 9M 2025 9M 2024
Revenue 10,612,734 8,012,503 31,676,904 20,121,825
Direct Cost (7,451,541) (3,004,823) (14,042,683) (8,105,210)
Gross Profit 3,161,193 5,007,680 17,634,219 12,016,615
Admin Expenses (2,756,476) (3,315,417) (7,420,949) (6,685,741)
Profit from Operations 491,776 1,767,268 10,517,650 5,535,442
Finance Income 15,306 60,390 81,245 277,647
Finance Cost (87,103) (68,698) (219,980) (222,824)
Profit Before Tax 419,978 1,758,961 10,378,916 5,590,265
Tax Expense (158,051) (484,092) (1,959,445) (951,634)
Profit After Tax 261,927 1,274,868 8,419,471 4,638,631
EPS (kobo) 19 94 622 343
Note: Q3 standalone earnings were impacted by higher direct costs and FX revaluation timing, but YTD profitability remains exceptional.
Revenue Performance
- +57% YoY revenue growth to ₦31.7bn, driven by
- Higher cargo throughput
- Increased aircraft turnaround activities
- Expansion in ramp, passenger and baggage handling services
- Sustained capacity utilization from global aviation recovery and domestic carrier expansion
Strategic Operating Tailwinds
- Increased international cargo activity
- Higher patronage from domestic airline fleet expansion
- Improved pricing & contract wins across major airports
Profitability & Margins
- Gross Profit: ₦17.6bn (+47% YoY)
- Strong cost discipline despite inflationary pressures
- PBT: ₦10.38bn (+86% YoY)
- PAT: ₦8.42bn (+82% YoY)
Key Drivers
- Economies of scale across equipment utilization
- Optimized workforce productivity
- Lower finance cost exposure despite capex expansion
- FX gain support through revaluation reserve movements
SAHCO continues to demonstrate a strong margin profile supported by capital deepening and service diversification.
Balance Sheet Overview
₦’000 Sept 2025 Dec 2024 % Δ
Total Assets 53,024,689 41,779,738 +27%
Total Equity 36,977,596 29,265,747 +26%
Non-current Borrowings 2,284,529 2,042,863 +12%
Cash 4,365,338 3,025,608 +44%
Retained Earnings 18,431,260 10,823,937 +70%
Interpretation
- Strong asset expansion driven by investment in ground support equipment
- Robust retained earnings illustrate strong profitability retention
- Healthy leverage position supports continued investment capacity
Key Ratios & Indicators
Metric Trend
Revenue Growth +57%
PBT Growth +86%
PAT Growth +82%
EPS Growth +81%
Asset Growth +27%
Borrowings Low & stable
Performance clearly reflects a high-growth, efficiently managed aviation support services business.
Strategic Insights
- Fleet & cargo growth across Nigeria’s aviation sector supporting volumes
- Increased capital investments in high-value ramp equipment & automation
- FX revaluation strengthening net worth but highlights currency exposure
- Potential growth from maintenance and cargo warehousing expansion
Strengths
- Strong operating leverage & earnings momentum
- Low leverage, strong liquidity & rising retained earnings
- Market leadership in ground handling and cargo services
- Best-in-class asset investment strategy in Nigeria aviation logistics
Weaknesses
- Exposure to FX volatility and inflationary maintenance costs
- High direct operating cost growth driven by equipment servicing and energy
Outlook
SAHCO remains well-positioned to sustain earnings growth as Nigeria’s aviation activity expands. Capacity upgrades and digitalization efforts will continue to drive service quality and throughput. Continued airline traffic growth, cargo expansion and higher aircraft utilization remain key tailwinds into FY2026.
Inflation and FX fluctuations remain operational considerations, but strong balance sheet health provides resilience.
Analyst View
“SAHCO has delivered exceptional earnings acceleration driven by robust aviation demand, strong asset utilization, and disciplined cost management. With sustained capital deployment and Nigeria's fast-rebounding aviation industry, the Company is firmly positioned for continued top-tier growth and value creation.”
Conclusion
SAHCO posted outstanding 9M 2025 results marked by strong revenue traction, significant margin expansion, and robust capital investment. Earnings strength and balance sheet expansion reinforce the Company’s strategic position as a leading aviation ground handling operator in West Africa. With improving industry fundamentals and effective operational execution, SAHCO remains a compelling value and growth play in Nigeria’s aviation support sector.
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Disclaimer
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