Singapore Technologies Engineering (ST Engineering) has reported a total revenue of $2.9 billion for the 1QFY2025 ended March 31, 8% higher y-o-y.
Defence and public security revenue surged by 18% y-o-y to $1.32 billion as it saw growth across all sub-segments, supported by project timing.
Commercial aerospace revenue inched up by 0.1% y-o-y to $1.15 billion due to the high base in 1QFY2024, which saw a 32% y-o-y surge in revenue. This year, strong engine maintenance, repair and operations (MRO) growth was offset mainly by lower passenger-to-freighter (PTF) revenue.
Urban solutions & satcom increased by 4% y-o-y to $446 million as the growth in urban solutions was partly offset by satcom.
During the quarter, the group reported contract wins of $4.4 billion, leading to an order book of $29.8 billion as at March 31. About $7.3 billion of its order book is expected to be delivered for the rest of the year.
The orders largely came from its defence and public security segment, of some $2.7 billion. They include overseas orders for 40mm and 155 mm ammunition; high-performance graphics processing unit (GPU) data centre infrastructure, artificial intelligence (AI)-enabled command & control systems, training & simulation solutions and a public camera system for the Singapore government as well as maintenance and overhaul works for commercial and naval ships.
See also: F&N reports 1HFY2025 earnings of $84.1 mil 0.3% higher y-o-y
Commercial aerospace, meanwhile, secured orders worth $1.3 billion and $0.5 billion was won by urban solutions and satcom.
According to the group, the impact of US tariffs will have an “immaterial” financial impact on the business. The first order has limited direct impact with the potential deferral of some $40 million per month in commercial aerospace revenue. ST Engineering says it does not plan to absorb its suppliers’ tariff costs under the second order.
While it sees potential recession and inflation risks, the group believes it is shielded from its diverse business portfolio.
Where possible, it will re-negotiate customer agreements, spread out its network of suppliers, deliver service at alternative sites and stockpile inventory, the group adds.
For the quarter, ST Engineering has declared an interim dividend of 4 cents per share.
Shares in ST Engineering closed 8 cents lower or 1.05% down at $7.51 on May 8.
