ST Engineering bags new contracts worth S$2.9 billion in Q2 2026
[SINGAPORE] ST Engineering on Friday (Aug 7) announced that it secured S$2.9 billion in new contracts in the second quarter of 2026.
These comprise S$1.2 billion from the commercial aerospace segment, S$1.2 billion from the defence and public security segment and S$500 million from the urban solutions and satcom segment.
Including these new wins and the recognition of the US$1.3 billion New Jersey Turnpike Authority E-ZPass Services contract, the group ended June with a strong order book of S$35.7 billion.
The commercial aerospace segment clinched the new orders across its maintenance, repair and overhaul (MRO), as well as its aerostructures and systems businesses.
Some of the key MRO contracts include airframe services and cabin interior upgrade work on the Airbus A330, Airbus A350 and Boeing 787 widebody aircraft for North American and Asia-Pacific airlines.
Also included are CFM56 and Leap engine service contracts for Asia-Pacific and European customers, and Boeing 787 component services for an European customer.
On the aerostructures and systems front, ST Engineering noted that demand for engine nacelles and composite floor panels held up well, underpinned by the production schedules of aircraft original equipment manufacturers.
Separately, the defence and public security segment won new orders across multiple business lines.
The digital systems business was awarded several contracts, including a counter-drone solution for air defence deployment in an Asian country. It also secured the provision of video intelligence solutions to enhance public safety in Singapore, high performance graphics processing unit infrastructure, as well as training and simulation solutions.
The cyber sub-segment secured various contracts including the supply and maintenance of cybersecurity services, encryptors and data diodes from various customers in Singapore.
The land systems business secured orders from repeat international customers for its 40 mm ammunition, a contract for several types of assault rifles from a law enforcement agency in South-east Asia, and multi-year MRO and refurbishment contracts for ground support equipment from a customer in the aviation sector.
Meanwhile, the marine segment provided MRO services to the United States Naval Ship fleet, while the defence aerospace business delivered MRO support for its international C-130 customer base.
ST Engineering’s urban solutions business also secured a follow-on contract to provide rail electronics solutions for Singapore’s Thomson-East Coast Line extension, and a contract to deliver an intelligent transport system for the Second Southern Ring Road in Riyadh. In the US, its tolling business secured new contracts for tolling systems and maintenance, and radio frequency identification solutions.
Meanwhile, smart utilities and infrastructure saw continued demand for integrated smart security management solutions, winning orders from public sector customers in Singapore.
Satcom secured a series of satellite operator contracts across the defence, mobility and enterprise markets, supporting network expansion, migration and modernisation programmes.
ST Engineering added that it does not expect the contracts to have any material impact on the group’s consolidated net tangible assets per share and earnings per share for the current financial year.
Also on Friday, Singapore’s High Court rejected a wholesale trader’s attempt to bring an ST Engineering unit into a trademark infringement suit over allegedly counterfeit components supplied for use in Republic of Singapore Air Force aircraft.
Shares of ST Engineering rose 0.7 per cent to close S$0.07 higher at S$10.32 on Friday, before the news.
