Nigeria’s two listed airport ground-handling companies have grown dramatically over the past five years, with combined revenue nearly quintupling since 2022. But the latest figures point to a new issue, the businesses are generating more sales and building much larger asset bases, yet rising costs and weaker cash positions are beginning to squeeze profitability.
Skyway Aviation Handling Company Plc (SAHCO) and Nigerian Aviation Handling Company Plc (NAHCO) generated combined revenue of N58.36 billion in 2026, up from N12.16 billion in 2022, an increase of 380 percent.
The growth has been accompanied by an expansion in profits over the longer term. Combined profit after tax rose from just N1.28 billion in 2022 to N17.01 billion in 2025, before falling to N14.70 billion in 2026.
Revenue increased by N4.97 billion, 9.3 percent, between 2025 and 2026, but combined profit before tax fell 7.2 percent from N21.75 billion to N20.19 billion. Profit after tax declined even more sharply, dropping 13.6 percent.
The pressure is coming largely from the cost side. Combined cost of sales jumped from N19.75 billion in 2025 to N27.60 billion in 2026, an increase of almost 40 percent, far outpacing revenue growth.
SAHCO’s revenue increased from N21.06 billion to N23.01 billion, but its cost of sales surged from N6.59 billion to N10.75 billion. As a result, profit before tax fell from N9.96 billion to N5.82 billion, while profit after tax more than halved from N8.14 billion to N3.85 billion.
For context, SAHCO generated almost N2 billion more revenue but ended the year with N4.29 billion less profit after tax.
Its net profit margin consequently fell from about 38.6 percent in 2025 to 16.7 percent in 2026, showing how quickly rising costs can erode the economics of additional revenue.
NAHCO, by contrast, has managed to convert revenue growth into stronger earnings.
Its revenue rose 9.3 percent from N32.33 billion to N35.35 billion, while profit before tax increased from N11.79 billion to N14.37 billion. Profit after tax rose 22.2 percent to N10.85 billion from N8.88 billion.
The contrasting performances suggest that the challenge facing the ground-handling industry is not simply a shortage of demand. Both companies recorded stronger revenue in 2026. The more important question is how efficiently each operator is converting that revenue into profit.
The balance sheet also shows how rapidly the businesses have expanded.
Combined assets rose from N45.01 billion in 2022 to N138.44 billion in 2026, more than tripling over the period. Between 2025 and 2026 alone, assets increased by N41.37 billion, or about 42.6 percent.
But the expansion in assets has not been matched by more cash.
Combined cash and cash equivalents fell year on year from N7.63 billion in half year 2025 to N6.04 billion in half-year 2026, despite the substantial increase in revenue and assets.
The cash-flow statement provides a further indication of where the money is going.
Combined cash generated from operating activities increased from N10.46 billion in 2025 to N15.60 billion in 2026, suggesting that the underlying businesses were still generating positive operating cash.
However, investing cash flow deteriorated sharply, moving from a N0.69 billion outflow in 2025 to a N7.17 billion outflow in 2026.
That suggests a significantly heavier investment burden during the year, particularly at SAHCO, whose investing cash outflow increased from N3.75 billion to N6.77 billion.
The companies are also returning substantial cash through financing activities. Combined financing cash flow was negative N16.67 billion in 2026, compared with negative N11.33 billion a year earlier.
NAHCO accounted for most of that movement, with financing cash flow of negative N14.45 billion in 2026, following a negative N12.17 billion in 2025.
The working-capital position also deserves attention.
Combined trade receivables increased from N30.79 billion in 2025 to N34.48 billion in 2026. That means more money was tied up in amounts owed by customers even as the companies reported higher revenue.
SAHCO’s receivables rose from N19.82 billion to N20.11 billion, while NAHCO’s increased from N10.97 billion to N14.37 billion.
The rise in receivables is particularly significant when compared with revenue. At SAHCO, trade receivables were equivalent to almost 87 percent of annual revenue in 2026. At NAHCO, the comparable figure was about 41 percent.
That does not mean the receivables are uncollectible, but it does show the conversion of reported revenue into cash remains an important issue for the two companies.
The liabilities side has expanded alongside the asset base. Combined liabilities rose from N43.33 billion in 2025 to N49.15 billion in 2026, taking the five-year increase from N17.58 billion in 2022 to N49.15 billion.
Yet the financing burden itself does not appear to be the main source of the 2026 profit decline.
Combined finance costs were N1.21 billion in 2026, slightly below the N1.24 billion recorded in 2025. NAHCO’s finance cost declined from N1.11 billion to N0.87 billion, although SAHCO’s increased from N0.13 billion to N0.33 billion.
This makes the sharp increase in cost of sales more important in explaining the deterioration in combined profitability.
The industry therefore presents a more nuanced picture than a simple growth story.
Since 2022, the two companies have transformed their financial scale. Revenue has risen by almost five times, assets have more than tripled and combined profit after tax has increased more than elevenfold.
But 2026 suggests that the next phase may be harder.
The companies can no longer assume that additional revenue will automatically produce proportionately higher earnings. The cost of generating that revenue, the amount tied up in receivables and the scale of investment required to support expansion are becoming increasingly important to the bottom line.
NAHCO currently appears better positioned on that metric. It increased both revenue and profit significantly in 2026, while SAHCO saw its profit after tax collapse despite comparable revenue growth.