Company Reports

ST Engineering is driving growth through improved utilization of its capital alongside a plan to contain costs. It has sold and continues to offload noncore activities to focus on areas that will provide synergies to its key commercial aerospace, defense, and smart city activities. In this regard, it is adding proprietary product makers to its stable. Overall, we see STE’s EPS growing at a five-year compound annual growth rate of 21% on revenue CAGR of 11% as commercial aerospace continues to benefit from increased capacity and strong engine service demand and as global defense spending rises.

Singapore Technologies Engineering's first-half net profit is up 27% year-on-year, with operating margin expanding to 10.7% from 9.5% a year ago. Group order book has risen to SGD 35.7 billion.

ST Engineering is driving growth through improved utilization of its capital alongside a plan to contain costs. It has sold and continues to offload noncore activities to focus on areas that will provide synergies to its key commercial aerospace, defense, and smart city activities. In this regard, it is adding proprietary product makers to its stable. Overall, we see STE’s EPS growing at a five-year compound annual growth rate of 21% on revenue CAGR of 11% as commercial aerospace continues to benefit from increased capacity and strong engine service demand and as global defense spending rises.

ST Engineering's first-quarter revenue of SGD 3.26 billion is up 11.5% year on year. On a segment basis, growth was led by commercial aerospace, which grew 14.6%, and a 17.7% rebound in urban solutions and satellite communications. The defense segment lagged at 6.7%.

STE's 2025 core net profit grew 21% year on year to SGD 851 million, driven by 9.5% growth in revenue and expansion in core operating margin to 8.9% from 8.3%. The company's reported net profit fell to SGD 463 million from SGD 702 million in 2024, due to one-off net write-offs of SGD 388 million.

ST Engineering is driving growth through improved utilization of its capital alongside a plan to contain costs. It has sold and continues to offload noncore activities to focus on areas that will provide synergies to its key commercial aerospace, defence and smart city activities. In this regard, it is adding proprietary product makers to its stable. Overall, we see STE’s EPS growing at a five-year compound annual growth rate of 21% on revenue CAGR of 11% as commercial aerospace continues to benefit from increased capacity and strong engine service demand and as global defense spending rises.

We recently published an update on ST Engineering that omitted an SGD 48 million one-off gain from the sale of its 49% stake in Shanghai Technologies Aerospace.

STE will release its full-year 2025 results on Feb. 27, 2026. To recap, STE's second-half 2025 net profit will be distorted by about SGD 430 million in net one-off charges.

ST Engineering is driving growth through improved utilization of its capital alongside a plan to contain costs. It has sold and continues to offload noncore activities to focus on areas that will provide synergies to its key commercial aerospace, defence and smart city activities. In this regard, it is adding proprietary product makers to its stable. Overall, we see STE’s EPS growing at a five-year compound annual growth rate of 21% on revenue CAGR of 11% as commercial aerospace continues to benefit from increased capacity and strong engine service demand and as global defense spending rises.

ST Engineering is driving growth through improved utilization of its capital alongside a plan to contain costs. It has sold and continues to offload noncore activities to focus on areas that will provide synergies to its key commercial aerospace, defence and smart city activities. In this regard, it is adding proprietary product makers to its stable. Overall, we see STE’s EPS growing at a five-year compound annual growth rate of 20% on revenue CAGR of 11% as commercial aerospace continues to benefit from increased capacity and strong engine service demand and as global defense spending rises.

STE guides that its 2025 net profit will reflect an impairment charge of SGD 667 million for its iDirect satellite communications business, partly offset by disposal gains. Third-quarter year-on-year revenue growth of 12.9% is driven by a robust 21.9% rise in its commercial aerospace segment.

ST Engineering is driving growth through improved utilization of its capital alongside a plan to contain costs. It has sold and continues to offload noncore activities to focus on areas that will provide synergies to its key commercial aerospace, defence and smart city activities. In this regard, it is adding proprietary product makers to its stable. Overall, we see STE’s EPS growing at a five-year compound annual growth rate of 19% on revenue CAGR of 10% as commercial aerospace continues to benefit from increased capacity and strong engine service demand and as global defense spending rises.

ST Engineering's 20% year-on-year interim net profit growth was driven by decent growth in key segments, led by the defense and public security segment, and cost savings all around.

Singapore Technology Engineering, or STE, is selling its asphalt paving machinery company LeeBoy for around USD 290 million, or SGD 372 million.

ST Engineering is driving growth through improved utilization of its capital alongside a plan to contain costs. It has sold and continues to offload noncore activities to focus on areas that will provide synergies to its key commercial aerospace, defence and smart city activities. In this regard, it is adding proprietary product makers to its stable. Overall, we see STE’s EPS growing at a five-year compound annual growth rate of 14.7% on revenue CAGR of 9.1% as commercial aerospace continues to benefit from increased capacity and strong engine service demand and as global defense spending rises.

ST Engineering revealed that first-quarter revenue grew 8% year over year, led by the defense segment's strong 18% sales rise. The company assessed that tariffs may lead to delays in airline clients' scheduled maintenance, repair, and overhaul, or MRO, activities.

At its investor day presentation, ST Engineering expects revenue to reach over SGD 17 billion in 2029 and net profit to expand at up to around 14% 2024-29 CAGR. Dividend policy has been revised to track profit growth.

ST Engineering is driving growth through improved utilization of its capital alongside a plan to contain costs. It has sold and continues to offload noncore activities to focus on areas that will provide synergies to its key commercial aerospace, defence and smart city activities. In this regard, it is adding proprietary product makers to its stable. Overall, we see STE’s EPS growing at a five-year compound annual growth rate of 14.7% on revenue CAGR of 9.1% as commercial aerospace continues to benefit from increased capacity and strong engine service demand and as global defense spending rises.

ST Engineering is driving growth through improved utilization of its capital alongside a plan to contain costs. It has sold and continues to offload noncore activities to focus on areas that will provide synergies to its key commercial aerospace, defence and smart city activities. In this regard, it is adding proprietary product makers to its stable. Overall, we see STE’s EPS growing a five-year compound annual growth rate of 12%, marking an improvement over the 2.7% prepandemic 10-year average, which reflects the pandemic recovery as well as the purchase of US toll road services provider TransCore and an expansion of its aerospace maintenance and passenger-to-freight activities.

ST Engineering ended 2024 with net profit at SGD 702.3 million and operating margin rising to 8.9% from 8.3% in 2023. Dividends were raised to SGD 0.17 per share from SGD 0.16.