“Strong contract win momentum is expected to continue, as management is actively pursuing US$11 billion [$14 billion] worth of international defence contracts and $6 billion worth of smart mobility projects in the next two years,” says Roy Chen of UOB Kay Hian (UOBKH).
The rearmament trend in the new world order has helped lift Singapore Technologies Engineering’s (ST Engineering) order book to a new record of $34.5 billion. As at end March, the company has won some $2.4 billion in new orders through its defence and public security segment, which accounts for half of the company’s total.
As seen in its 1QFY2026 business update, ST Engineering is one of those rare large caps posting double-digit growth. Revenue for the three months to March was up 11% y-o-y to $3.26 billion, driven by growth across its business segments. If contributions from a recently divested US construction machinery unit, LeeBoy, are disregarded, revenue would have grown by 15%. According to ST Engineering, 1QFY2026 earnings grew faster than revenue. Shareholders, who received 11 cents in final and special dividends on May 13, can look forward to an interim dividend of 4 cents on June 11.
