SAHCO doubles profit to N14.6bn amid rising costs

Chukwuma Umeorah

Skyway Aviation Handling Company Plc (SAHCO) recorded a sharp increase in operating profit for the year ended December 31, 2025, with earnings from operations rising to N14.62 billion, nearly double the N6.53 billion posted in 2024, as strong revenue growth offset mounting cost pressures.

The company’s audited results show that revenue grew by 54 per cent to N44.46 billion from N28.94 billion in the prior year, driven by increased demand for passenger and cargo handling services as well as improved performance across its ancillary and value chain businesses.

Despite the strong topline growth, SAHCO faced rising costs during the period, reflecting the broader inflationary environment. Cost of sales climbed to N18.98 billion from N12.56 billion in 2024, while administrative expenses increased to N11.24 billion from N10.05 billion, largely due to higher utility expenses and personnel costs.

However, the pace of revenue expansion outstripped the increase in costs, leading to a significant improvement in profitability. Gross profit rose to N25.48 billion compared to N16.38 billion recorded a year earlier, supporting the strong operating performance. Profit after tax stood at N11.73 billion, representing a 142 per cent increase from N4.83 billion in 2024, after accounting for a tax expense of N2.55 billion.

Speaking on the performance, the Managing Director/CEO said the results reflect the strength of the company’s strategic direction and the resilience of its business model, noting that “despite a challenging operating environment marked by inflationary pressures and rising costs, the Company sustained strong margins and nearly doubled its operating profit.”

Chairman, Dr. Taiwo Afolabi, also attributed the performance to sustained investment in modern equipment and infrastructure, stating that such investments have enhanced operational efficiency, improved service delivery, and positioned the company for long-term growth.

The company also reported total comprehensive income of N11.42 billion, lower than profit after tax due to a foreign exchange loss of N314.5 million during the year, compared to a gain recorded in the previous period.

SAHCO’s balance sheet remained robust, with total assets increasing to N56.58 billion from N41.78 billion in 2024, driven mainly by growth in property, plant and equipment, which rose to N24.61 billion from N16.03 billion. Shareholders’ equity also strengthened to N39.87 billion, supported by retained earnings of N21.74 billion.

Cash flow from operating activities improved significantly to N13.47 billion from N5.01 billion in the previous year, reflecting stronger cash generation. The company closed the year with cash and cash equivalents of N5.70 billion, up from N3.03 billion in 2024.

Earnings per share increased to 867 kobo from 357 kobo, underscoring enhanced shareholder value, while the company declared a final dividend of N1.6 billion for the year under review.