ST Engineering reported FY2025 earnings of $462.8 million, down 34.1% from FY2024, due to impairment losses and divestment gains. Excluding one-offs, the company&rsquo s net profit was a record $850.8 million, with revenue reaching a record $12.34 billion.

ST Engineering&rsquo s share price reached a new high, driven by new products and contracts. The company secured a record order book of $32.6 billion, with significant contributions from arms sales, commercial contracts, and even its satellite business. At the Singapore Airshow 2026, ST Engineering showcased its AGIL Secure FastPass system and other innovative products, aiming to maintain its sales momentum.

 

The group&rsquo s total contract awards for 2025 stand at S$18.7 billion

 

[SINGAPORE] RHB Bank maintained its &ldquo buy&rdquo call on ST Engineering while raising its target price to S$10.70 from S$9.40, it said in a note on Thursday (Jan 29).

 

The revised target price represents a potential 13 per cent upside from current trading levels of S$9.48 as at the time of the report.

 

&ldquo Our positive view is braced by record 2025 contract wins, improving balance sheet post divestments, and upside from international defence amid supportive geopolitical backdrops and sustained defence and public security momentum,&rdquo said analyst Shekhar Jaiswal. 

 

Record contract wins

The bullish re-rating follows the group&rsquo s announcement on Wednesday regarding its order book performance. The group&rsquo s total contract awards for 2025 amounted to a record S$18.7 billion, after having secured S$4.7 billion in new contracts for the fourth quarter of 2025.

 

This represented a roughly 49 per cent year-on-year increase from the S$12.6 billion recorded in 2024.

 

Key highlights from the contract wins include:

 

Defence and public security: Leading the pack with S$2.5 billion in wins (47 per cent year-on-year increase), including contracts for Ministry of Defence&rsquo s next-generation infantry fighting vehicle programme and security systems for the Singapore Prison Service.

Commercial aerospace: Secured S$1.7 billion in new contracts, driven by multi-year airline maintenance, repair and overhaul agreements, including a five-year nacelle support deal for LOT Polish Airlines.

Urban solutions and satcom: Contributed about S$500 million, with wins in mobility and transport infrastructure such as the Changi Airport Terminal 2 Skytrain electronics and 250 electric buses for the Land Transport Authority.

RHB noted that the defence and public security segment has now delivered five consecutive quarters of year-on-year growth in order wins, supported by a favourable geopolitical backdrop.

 

&ldquo The macro backdrop is also turning more supportive for international defence: Rapid technology innovation, heightened geopolitical tensions and sharper focus on supply chain resilience are accelerating procurement cycles, lifting defence budgets and increasing localisation requirements,&rdquo said the analyst.

 

Upcoming financial results

ST Engineering is scheduled to report its results for the second half and full year of 2025 on Feb 27.

 

RHB forecasts a strong showing, expecting H2 recurring net earnings to come in at about S$430 million &ndash a 17 per cent year-on-year increase, aided by improved margins in the commercial aerospace sector.

This is a 49% increase from the S$12.6 billion recorded in 2024

 

[SINGAPORE] Singapore Technologies Engineering&rsquo s ( ST Engineering   : S63 +0.42%) total contract awards for 2025 reached a record S$18.7 billion, exceeding the S$12.6 billion total in 2024 by about 49 per cent, the group announced on Wednesday (Jan 28). 

 

The full-year tally was lifted by about S$4.7 billion in new contracts secured during the fourth quarter.

 

The contract wins were distributed across the group&rsquo s three main business clusters.

 

The defence and public security segment accounted for the largest share of the quarterly wins at S$2.5 billion.

 

Land Systems: The division was awarded a contract by Singapore&rsquo s Ministry of Defence to produce next-generation infantry fighting vehicles. It also received international orders for 40 mm and 120 mm ammunition.

Digital Systems: The Home Team Science and Technology Agency contracted the group to develop an enterprise integrated security system for the Singapore Prison Service. Other contracts included cloud infrastructure services and training systems.

Cyber: The business secured contracts for cybersecurity systems and secure data transfer products for local partners.

 

The commercial aerospace segment secured S$1.7 billion in new contracts.

 

Maintenance, repair and overhaul: Agreements included a five-year nacelle maintenance contract for LOT Polish Airlines&rsquo Boeing 787 fleet and a similar contract for another European airline. The group also signed a multi-year airframe maintenance agreement with a North American airline.

Aerostructures and systems: The group reported orders for engine nacelles and composite floor panels, citing increased new aircraft production.

The urban solutions and satcom segment recorded about S$500 million in contracts.

 

ST Engineering said that these contracts are not expected to have a material impact on the group&rsquo s consolidated net tangible assets or earnings per share for the current financial year.