ST Engineering Q3 revenue rises 9% to S$3.4 billion, declares interim dividend of S$0.05 per share
Order book hits record S$37.7 billion as at end-September, up from S$33.2 billion as at end-2025
[SINGAPORE] ST Engineering’s revenue for the third quarter ended September rose 9 per cent year on year to S$3.4 billion, from S$3.1 billion in the previous corresponding period, the group said on Friday (Nov 13).
The technology and engineering company declared a third-quarter interim dividend of S$0.05 per share, up from S$0.04 a year earlier. Its Q1 and Q2 dividends were S$0.04 and S$0.05 per share, respectively, bringing the total for the first three quarters to S$0.14 per share.
For the first nine months of 2026, revenue increased 10 per cent to S$10 billion, from S$9.1 billion in the same period a year earlier. Excluding LeeBoy, its US-based construction equipment business divested on Sep 4 last year, revenue grew 13 per cent on a rebased basis.
Defence and public security was the group’s largest revenue contributor for the nine-month period, generating some S$4.3 billion, up 7 per cent year on year. Excluding LeeBoy, revenue from the segment grew 13 per cent. Q3 revenue rose 8 per cent to S$1.4 billion, or 12 per cent on a rebased basis.
The increase was led by marine and digital systems and cybersecurity businesses. The segment secured S$5.5 billion in new contracts in the first nine months, including S$1.8 billion in Q3.
These included a five-year contract to supply 40 mm ammunition to the UK Ministry of Defence, projects involving defence command-and-control systems in Singapore, and maintenance and support services for the US Navy’s fleet.
Meanwhile, commercial aerospace revenue rose 12 per cent to about S$4.1 billion in the first nine months, supported by higher contributions from engine maintenance, repair and overhaul work and nacelles, a container for aircraft parts. Revenue for Q3 increased 7 per cent to S$1.4 billion.
The segment secured S$4.2 billion in new contracts in the first nine months, of which S$1.4 billion was won in Q3. The latest wins included its first Airbus A220 airframe heavy maintenance contract with an Asia-Pacific operator and airframe maintenance agreements with Asia-Pacific airline customers.
Revenue from urban solutions and satellite communications increased 15 per cent year on year to about S$1.7 billion in the first nine months. Q3 revenue also rose 15 per cent to S$600 million, with higher contributions from both businesses.
SEE ALSO
The segment secured S$3.5 billion in new contracts in the nine-month period, including S$2.4 billion in Q3.
Wins included turnkey rail services for the Taoyuan MRT Brown Line and Green Line Extension in Taiwan, integrated smart security management solutions contracts in Singapore and tolling infrastructure modernisation work for the Tampa-Hillsborough Expressway Authority in the US.
Across the group, contract wins totalled S$13.2 billion in the first nine months, including S$5.6 billion in the third quarter. The nine-month figure excluded S$1.7 billion in New Jersey Turnpike Authority order book recognition.
The group’s order book stood at a record S$37.7 billion as at September, up from S$33.2 billion as at end-2025. About S$3.1 billion is expected to be delivered in the remainder of 2026.
ST Engineering also reported a record-low operating expenses-to-revenue ratio of 9 per cent for the first nine months, compared with 10.2 per cent for the whole of 2025. The 2025 figure excluded a one-off impairment loss of iDirect group.
Nuclear energy
Separately, ST Engineering said it is exploring long-term opportunities in the nuclear energy sector, drawing on its capabilities in complex, safe and mission-critical environments and partnering organisations with complementary expertise.
Its current collaborations include those with the Agency for Science, Technology and Research, Sembcorp Utilities and Commonwealth Fusion Systems. Areas of activity include factory-fabricated structural modules, such as protective steel structures, and advanced materials for fusion reactors, including tungsten coatings for reactor’s inner walls.
The group also sees opportunities to apply its capabilities in digital twin technology and artificial intelligence, advanced materials and manufacturing, and large-scale systems integration.
Shares of ST Engineering were up 0.2 per cent or S$0.02 to close at S$9.76 on Thursday.
