The company’s commercial aerospace business, as one of the largest maintenance, repair and overhaul service providers in the world, posted stronger ebit and revenue growth. However, investors are more enamoured of its defence and public security business, which is set for stronger, more visible growth ahead, as rearmament by countries big and small becomes a common priority.
In the immediate aftermath of Singapore Technologies Engineering’s (ST Engineering) FY2025 report card on Feb 27, the market was not quite able to form a consensus view. On the one hand, the company reported a lower bottom line, weighed down by an impairment charge on its long-struggling satcom unit. On the other hand, the company’s new orders momentum marched on to a high of $33.2 billion, all but guaranteeing earnings visibility — and steady dividends — three years out. Following an initial drop, the share price almost fully recovered by the end of the day, albeit with some hesitance.
Over the weekend, if there were investors with any lingering doubts, the surprise attack on Iran by the US and Israel surely helped make the decision. Even as broader markets turned jittery, ST Engineering’s share price, which has already doubled since the start of 2025, climbed to a new record of $11.18 before easing slightly to close at $10.38 on March 4.
