ST Engineering bags S$4.4B in new contracts for Q1 2025, boosted by defence and public security and commercial aerospace deals

SINGAPORE: Singapore Technologies Engineering (ST Engineering) secured S$4.4 billion in new contracts in the first quarter of 2025 (Q1 2025), mainly due to its commercial aerospace segment and defence and public security segment.

Of this, S$1.3 billion came from the group’s commercial aerospace segment, which included deals under its maintenance, repair, and overhaul (MRO) and aerostructures and systems (A&S) divisions.

According to The Edge Singapore, this included several MRO contracts, such as a three-year agreement with an Asian airline for Boeing 787 reconditioning and exchange services. It also landed multi-year contracts for maintaining LEAP-1A engines with airlines in the Middle East and Asia.

In its A&S division sub-segment, ST Engineering received orders for engine nacelles and composite floor panels, benefiting from the growing production of new aircraft.

The defence and public security segment brought in the largest share, securing about S$2.7 billion in contracts. One of the deals was a S$200 million contract with Home Team Science & Technology Agency (HTX) to implement an island-wide public camera system for better real-time monitoring and faster responses to incidents. The group also secured contracts for cyber solutions and advanced encryption products, cloud-based security services, and an artificial intelligence (AI)-enabled cybersecurity system for critical infrastructure in the energy sector.

The urban solutions and satellite communications (satcom) segment added S$0.5 billion through contracts for smart mobility, including rail electronics solutions for the Cross Island Line and mobile network upgrades for the Downtown Line. It also landed contracts to provide managed services for several car parks in Singapore.

Meanwhile, its tolling business received new contracts for electronic road tolling, maintenance, and back office solutions.

ST Engineering’s smart utilities and infrastructure division also secured contracts to roll out integrated smart security management solutions for the city-state’s public sector customers. Its satcom business won ground infrastructure contracts supporting the aviation, maritime, government, and defence sectors across multiple regions.

Earlier in March, the group’s shares jumped over 2% after announcing a higher dividend policy. In a bourse filing, the group stated that it plans to pay four cents per share for the first three quarters of FY2025 and a final dividend of six cents, totalling 18 cents. /TISG