With one-off items including a mix of impairment of its satcom business, versus gains from divestments, Singapore Technologies Engineering has reported FY2025 earnings of $462.8 million, down 34.1% from FY2024's $702.3 million.
In summary, the company booked impairment losses of $689 million and divestment gains of $301 million.
If these one-offs are excluded, the company's "base operating performance" net profit was a record $850.8 million, an increase of 21%.
Revenue in the same year reached a record $12.35 billion, up 9% over the preceding FY2024.
“In 2025, the group delivered excellent underlying performance, reflecting the strength and resilience of our businesses," says group president and CEO Vincent Chong, adding that he expects strong growth momentum ahead.
"We continued to streamline our portfolio through several divestments, recycling our capital and enhancing our focus on our core businesses," he adds.
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While the company's share price has been enjoying greater appreciation by investors for a global pick up in arms sales, ST Engineering's commercial business has grown as well. In FY2025, commercial sales and defence sales constituted $8.6 billion and $3.8 billion respectively.
Revenue from its commercial aerospace segment posted the biggest jump of 14% to $4.99 billion, while defence-related revenue was up 8% to $5.33 billion.
In FY2025, the company secured $18.7 billion worth of new contracts, a jump of 49% y-o-y, bringing its total order book as of Dec 2025 to $33.2 billion, of which $9.9 billion is to be delivered in the current FY2026.
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In a separate announcement on Feb 27, ST Engineering says it has won a five-year contract worth €315 million to provide maintenance and related works for Qatar's army.
As guided when it gave its 3QFY2025 updates last November, the company plans to pay a final dividend of 6 cents, plus a special dividend of 5 cents, bringing its total FY2025 payout to 23 cents.
For the whole of FY2024, the company paid 17 cents.
ST Engineering shares closed at $10.02 on Feb 26, down 2.05% for the day but up 90.86% in the past year.
