Skyway Aviation profit falls 22.13% to N8.08bn as costs outpace revenue

Skyway Aviation Handling Company Plc (SAHCO) reported a pre-tax profit of N8.08 billion for the nine months ended September 30, 2026, down 22.13% from N10.38 billion in the same period of 2025. Revenue rose 8.15% to N34.26 billion from N31.68 billion, but higher direct costs and administrative expenses pushed profit after tax down 36.65% to N5.33 billion from N8.42 billion. Earnings per share fell to 394 kobo from 622 kobo.

The third quarter was stronger. Q3 pre-tax profit rose to N2.33 billion from N419.98 million in Q3 2025, a 455.32% increase.

Revenue mix

Passenger handling and related services remained the biggest revenue source at N24.48 billion, up 4.60% from N23.40 billion and about 71.45% of total revenue. Import cargo handling rose 24.60% to N8.20 billion from N6.58 billion, contributing 23.93%. Export cargo handling fell 6.60% to N1.58 billion from N1.69 billion, or 4.62% of revenue.

Costs and margins

Direct costs rose 16.54% to N16.37 billion from N14.04 billion. Direct labour costs increased 52.81% to N3.92 billion from N2.57 billion. Depreciation charged to direct costs rose 48.06% to N2.18 billion from N1.47 billion, while concession fees rose to N1.67 billion from N1.55 billion. Gross profit edged up 1.48% to N17.89 billion from N17.63 billion, but gross profit margin declined to 52.23% from 55.67%.

Administrative expenses rose 36.00% to N10.09 billion from N7.42 billion. Employee benefit expenses jumped 78.72% to N3.94 billion from N2.21 billion. Other operating income increased 69.51% to N515.96 million from N304.38 million, but it was not enough to stop operating profit from falling 20.91% to N8.32 billion from N10.52 billion.

Finance income rose 225.66% to N264.58 million from N81.25 million. Finance expenses rose 127.62% to N500.73 million from N219.98 million, leaving a net finance expense of N236.15 million, compared with N138.74 million. Income tax expenses increased 40.23% to N2.75 billion from N1.96 billion.

Balance sheet and market

Total assets rose 6.17% to N87.79 billion from N82.69 billion as of December 2025. Property, plant and equipment increased 17.98% to N57.25 billion from N48.53 billion. Trade and other receivables fell 20.97% to N16.07 billion from N20.33 billion. Cash and cash equivalents rose 12.52% to N5.50 billion from N4.88 billion. Total borrowings stood at N3.97 billion, against N3.85 billion as of December 2025. Shareholders’ equity rose 5.08% to N65.37 billion from N62.21 billion.

Net operating cash flow improved 42.99% to N13.74 billion from N9.61 billion, even as the company spent N11.60 billion on property, plant and equipment. SAHCO paid N1.62 billion in dividends, compared with N812.15 million in the same period of 2025. No fresh Q3 interim dividend was declared.

Skyway Aviation shares closed at N171.20 on Friday, October 30, 2026, unchanged from the previous 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. It was unchanged at N171.20 on October 29 after the results were released. Month to date, the shares were unchanged at N171.20, a 0.00% return for October.

Separate market updates noted that OPay’s IPO sale was halted after its NYSE debut, UAC’s 9M pre-tax profit jumped 262.5% to N37.69 billion as revenue tripled, and NAHCO’s nine-month pre-tax profit rose 18.39% to N21.24 billion.

The results show revenue growth is not translating into stronger earnings because labour, depreciation, concession and administrative costs are rising faster. For investors, the stronger Q3 profit and improved operating cash flow offer some relief, but the full nine month profit decline keeps pressure on margins.