Singapore Technologies Engineering (ST Engineering) today announced that the Group secured about $4.3 billion worth of new contracts in the fourth quarter of 2024. These comprise $1.8 billion from Commercial Aerospace segment, $1.7 billion from Defence & Public Security segment and $0.7 billion from Urban Solutions & Satcom segment.
Commercial Aerospace clinched several new contracts and orders worth about $1.8 billion across its Maintenance, Repair & Overhaul (MRO) and Aerostructures & Systems (A&S) subsegments, reflecting its strong market position and continued demand for aerospace solutions underpinned by strong aviation demand.
Underscoring the momentum in the engine MRO market, new MRO contracts included a 15-year exclusive contract announced in October 2024 with Akasa Air to support its LEAP-1B engines in their first Performance Restoration Shop Visit (PRSV) and a contract with an Asian airline for CFM56-7B engine heavy shop visits. Other MRO contracts included a six-year airframe heavy maintenance contract to support a US- based airline’s Boeing 787 fleet and an exclusive five-year LEAP-1A nacelle MRO agreement with a European airline. For its A&S sub-segment, Commercial Aerospace continued to receive orders for nacelles and composite floor panels in support of aircraft OEMs’ production.
Defence & Public Security won about $1.7 billion worth of new orders across its business lines. The Land Systems business scored a significant international land platform win when it signed a strategic partnership contract with Kazakhstan Paramount Engineering to provide engineering and technical expertise for a new 8x8 amphibious multi-purpose armoured vehicle based on its proven Terrex 8x8 Infantry Fighting Vehicle. The contract, announced in December 2024, marked its entry into a new market in Central Asia. In addition, the Land Systems business received orders for 155mm ammunition from international customers.
New contracts for the Digital Systems business included the development of a high-performance AI cloud infrastructure, as well as AI-enabled command and control systems and training and simulation solutions. The Cyber business also kept up its momentum in securing new contracts for its cyber solutions and advanced encryption products, as well as the provision of cloud-based managed security services for a customer in Asean. The Marine business won a shipbuilding contract to design and build a Walk-to-Work vessel for a leading oil and gas company, as well as various ship repair and maintenance contracts for both commercial and naval ships.
Urban Solutions & Satcom continued to strengthen its global smart city position with contracts worth about $0.7 billion across its business lines. Its Urban Solutions business secured contracts to provide various smart metro solutions for the Blue and Orange Lines in Bangkok, Red Line Extension in Kaohsiung, as well as passenger information systems for the North-South and East-West Lines in Singapore. In tolling, the business continued to see strong performance and received orders for tolling as well as operations and maintenance.
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Smart Utilities and Infrastructure contracts included a building structural health monitoring project and integrated smart security management solutions for customers in Singapore. Satcom received ground infrastructure contracts for the aviation, government and enterprise segments in various regions. These contracts are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
Shares in ST Engineering closed at $4.83 on Feb 6.
