ST Engineering shares reached a new record of $6.03 on March 4, a day after various European defence stocks, such as Rheinmetall and BAE Systems, jumped more than 10% each. ST Engineering shares closed at $6.03 on March 4, extending a gain of more than 19% from before it reported its FY2024 earnings on Feb 27.
The recovery of the commercial aviation industry has been a key driver of ST Engineering's post-Covid-19 growth. As a leading provider of maintenance, repair and overhaul services for commercial jets, the company capitalised on the sector's strong rebound, with its share price returning to pre-pandemic levels by last July.
The defence sector has further bolstered the boost from the commercial aerospace segment. Ongoing geopolitical tensions since Russia's invasion of Ukraine three years ago have led to increasing investor focus on defence. Analysts now predict that sales of military equipment, weapons and ammunition will drive sustained earnings growth for the company.
