Singapore Technologies Engineering (ST Engineering) has posted earnings of $336.5 million for 1HFY2024 ended June, 20% higher y-o-y compared to the previous corresponding period.
The company recorded a revenue of $5.52 billion for 1HFY2024, a 14% growth y-o-y, driven by higher contributions from all three business segments.
Group ebitda was $786 million, up 11% y-o-y from $711 million. Group ebit increased by 18% y-o-y to $523 million from $444 million.
The commercial aerospace (CA) segment revenue grew 20% y-o-y to $2.23 billion, driven by higher revenues from aerospace maintenance, repair, and operations (MRO) and aerostructures and systems sub segments.
The defence and public security (DPS) segment revenue grew 12% y-o-y to $2.37 billion with the increase largely driven by its digital systems and cyber and marine sub-segments, even as defence aerospace and land systems sub-segments recorded higher revenues y-o-y.
The urban solutions and satcom (USS) segment revenue was $918 million, 3% higher y-o-y, attributed to higher revenue from the urban solutions sub-segment which includes TransCore, offset by lower revenue from Satcom sub-segment.
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In 1HFY2024, commercial sales and defence sales accounted for $3.9 billion and $1.6 billion respectively of the company's revenue. As at June 30, ST Engineering held $430 million in cash and cash equivalents.
The company secured $6.1 billion of new contracts for 1HFY2024, including $3 billion announced for 1QFY2024. In 2QFY2024 alone, the Group won $3.1 billion in new contracts, comprising $1.29 billion for CA, $0.96 billion for DPS and $0.81 billion for USS.
ST Engineering ended 1HFY2024 with an order book of $27.9 billion, expecting to deliver about $4.9 billion from the order book in the remaining months of 2024.
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The company has declared a second interim dividend of 4 cents per ordinary share, payable on September 5.
Shares in ST Engineering closed 3 cents higher on Aug 13 or 0.7% up at $4.28.
