Reading between the lines in the 2Q26 Management Discussion and Analysis of SKY ICT Public Company Limited (SKY): Revenue up 0.7%. Net profit up 16.1%. And an aviation segment that swings from Bt133m of growth to a Bt45m decline.
The numbers
New equipment sales offset a system integration slide
SKY ICT is a Thai ICT group providing aviation technology, ICT system integration, and IT product sales to public- and private-sector clients. In 2Q26, total revenue was little changed at Bt2,646m, up 0.7% YoY, as a new Bt148m contribution from computer equipment and software sales to private sector customers, a category with no revenue a year earlier, offset a 20.2% YoY decline in system integration revenue to Bt712m.
Margins widen on a higher-margin sales mix
Gross margin rose to 17.5% in 2Q26 from 16.7% in 2Q25, helped by the new equipment and software sales line, which carried a 30.4% gross margin, above the group average. Net profit rose 16.1% YoY to Bt202m, a net margin of 7.7% against 6.6% in 2Q25.
Borrowing grows to fund two named projects
Total liabilities rose to Bt7,940m at 2Q26 from Bt7,519m at 1Q26, as long-term borrowings continued to be drawn for the Office of the Basic Education Commission’s cloud computing leasing project, joined this quarter by financing for a new digital radio communication lease-purchase agreement with the Provincial Electricity Authority.
What the numbers don’t show
Comparing the 2Q26 MD&A with 1Q26, a couple of things stand out.
SI backlog nearly doubles, without reconciliation to the new contract win
In 1Q26, the Group’s backlog stood at Bt25,287m, split 90% Technology as a Service and 10% system integration (Bt2,518m). In 2Q26, total backlog rose to Bt27,838m, with the system integration share nearly doubling to 18% (Bt5,012m).
The 2Q26 filing separately discloses that subsidiary PIS was named winning bidder, alongside a 50% partner, on a Bt3,278m ERP project for Airports of Thailand during the quarter. The filing does not state how much of the backlog increase this project represents, nor whether other new system integration contracts contributed.
Aviation Service revenue reverses from growth to decline
In 1Q26, the Aviation Service segment, which covers passenger processing and screening systems at six Airports of Thailand facilities, grew Bt133m, or 25.9% YoY, to Bt645m, becoming the Group’s second-largest revenue segment. The 1Q26 filing’s dedicated tourism and aviation risk factor described only general volatility in international flight volumes and did not specifically name the Middle East as a driver of Aviation Service segment revenue, even though the segment’s actual revenue grew that quarter.
In 2Q26, Aviation Service revenue fell by Bt45m, which the MD&A now attributes directly to the Middle East conflict reducing international tourist numbers and to higher jet fuel prices cutting flight frequencies.