Singapore Technologies Engineering has reported earnings of $402.8 million for its 1HFY2025, up 19.7% y-o-y. Revenue in the same half year ended June was up 7.2% to $5.92 billion, as all three of its business segments contributed to the growth. Revenue would have been up 8% if not for a weaker US dollar.
Its commercial aerospace segment, driven by higher engine maintenance and overhual orders, reported revenue of $2.35 billion, up 5% y-o-y. Thanks to a better margin mix, ebit was up 18% y-o-y to $223 million.
Defence and public security generated revenue of $2.65 billion, up 12% y-o-y; Ebit was up 13% y-o-y to $367 million.
Revenue for urban solutions & satcom was flat y-o-y at $921 million but ebit was up 33.3% to $12 million thanks to better margin mix and cost savings.
In 1HFY2025, the company won $9.1 billion in new orders, bringing its total order book to $31.2 billion as at June 30.
The company plans to pay an interim dividend of 4 cents per share for its 2QFY2025.
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Vincent Chong, president and group CEO, calls the 1HFY2025 numbers a "robust" set of results.
"In executing our growth strategy, we continue to be agile in navigating the evolving global landscape," he says.
Referring to a few recent divestments, such as that of US construction machinery unit Leeboy and SPTel, a fibreoptic JV, Chong says these deals are in line with the company's portfolio rationalisation strategy to exit non-core business and recycle capital.
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"We remain steadfast in strengthening our core businesses. Our strong order book continues to provide revenue visibility for the group," he adds.
ST Engineering shares closed on Aug 13 at $8.96, a new record close. It is up more than 90% year to date.
