Singapore Technologies Engineering (ST Engineering) has reported revenue of $2.7 billion for the 1QFY2024 ended March, 18% higher y-o-y. The growth was due to the growths in the group’s commercial aerospace and defence & public security segments and offset by a dip in its urban solutions & satcom revenue.
Commercial aerospace revenue surged by 32% y-o-y to $1.2 billion thanks to broad-based growth and strong growth in engine maintenance, repair and overhaul (MRO).
Defence & public security’s revenue also grew by 14% y-o-y to $1.1 billion as growth was seen in all sub-segments. According to ST Engineering, its digital business comprising cloud, artificial intelligence (AI) analytics and cyber is poised to “well exceed” its revenue target for FY2026.
Urban solutions & satcom saw revenue dip by 1% y-o-y to $429 million even though revenue from TransCore grew by over 10% y-o-y. The base business revenue for the segment is “2H weighted”.
During the quarter, ST Engineering clinched $3.04 billion in new contracts, with defence & public security accounting for more than half at $1.65 billion. Commercial aerospace won $0.84 billion in new contracts while urban solutions & satcom won $0.54 billion worth of contracts.
As at March 31, ST Engineering’s order book stood at $27.7 billion with $6.5 billion expected to be delivered for the rest of the year.
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An interim dividend of 4 cents per share was declared for the quarter.
Shares in ST Engineering closed at $3.98 on May 10.
