The SIA Engineering Company Limited (SGX:S59) Yearly Results Are Out And Analysts Have Published New Forecasts

It's been a good week for SIA Engineering Company Limited (SGX:S59) shareholders, because the company has just released its latest annual results, and the shares gained 6.6% to S$2.41. It was a workmanlike result, with revenues of S$1.2b coming in 2.6% ahead of expectations, and statutory earnings per share of S$0.12, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've discovered 1 warning sign about SIA Engineering. View them for free.

Taking into account the latest results, the most recent consensus for SIA Engineering from four analysts is for revenues of S$1.34b in 2026. If met, it would imply an okay 7.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 12% to S$0.14. Before this earnings report, the analysts had been forecasting revenues of S$1.31b and earnings per share (EPS) of S$0.13 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

View our latest analysis for SIA Engineering

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of S$2.70, suggesting that the forecast performance does not have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values SIA Engineering at S$2.80 per share, while the most bearish prices it at S$2.59. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that SIA Engineering's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.7% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.9% per year. So it's pretty clear that, while SIA Engineering's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around SIA Engineering's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at S$2.70, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for SIA Engineering going out to 2028, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with SIA Engineering , and understanding this should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.