Singapore Technologies Engineering (ST Engineering) has reported revenue of $2.4 billion for the 3QFY2023 ended Sept 30, 9% higher y-o-y.
Revenue for the 9MFY2023 rose by 12% y-o-y to $7.3 billion. During the 9MFY2023, revenue grew by double digits across the group’s businesses except for defence & public security, which fell by 1% y-o-y to $3.09 billion. Excluding its US marine business, however, the segment was up by 6% y-o-y.
Revenue for the segment saw growth from its defence aerospace, marine, and digital systems & cyber sub-segments. The segment’s digital business also registered strong growth momentum.
In commercial aerospace, 9MFY2023 rose by 30% y-o-y to $2.84 billion due to strong performances across the board as recovery in the aviation sector continues.
Urban solutions & satcom saw revenue grow by 13% y-o-y to $1.37 billion due to TransCore and offset by Satcom, whose transformation is underway. In its release, ST Engineering notes that the segment’s FY2023 ebit is expected to remain profitable but lower y-o-y due to “challenges in Satcom”.
TransCore’s earnings accretion target remains on track for its second year after the acquisition.
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During the 9MFY2023, ST Engineering signed $11.7 billion in new contracts. As at Sept 30, its order book stood at $27.5 billion with $2.5 billion expected to be delivered in the remaining months of 2023.
For the 3QFY2023, the group declared an interim dividend of 4.0 cents per share.
Shares in ST Engineering closed 3 cents higher or 0.79% up at $3.82 on Nov 9.
