[SINGAPORE] ST Engineering bagged new contracts worth about S$4.4 billion in the first quarter of 2025.
In a statement on Monday (Apr 28), the company said commercial aerospace accounted for about S$1.3 billion of the new jobs, defence and public security S$2.7 billion and the rest came from the urban solutions and satcom segment.
The new contracts in the commercial aerospace segment were from across its maintenance, repair and overhaul (MRO) and aerostructures and systems (A&S) sub-segments.
New MRO contracts comprised component MRO contracts, including a three-year Boeing 787 reconditioning and exchange service agreement with an Asian airline. The unit also obtained several multi-year LEAP-1A engine maintenance contracts with airlines in the Middle East and Asia, too.
In its A&S subsegment, healthy orders were maintained for engine nacelles and composite floor panels, underpinned by increasing new aircraft production.
Across the defence and public security segment’s business lines, its digital systems business was awarded a contract worth about S$200 million from the Home Team Science & Technology Agency for the integration and installation of an islandwide public camera system that enables real-time sense-making and faster response to incidents.
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Its digital business, comprising artificial intelligence (AI), cloud and cyber capabilities, secured contracts which include the implementation of a high-performance graphics processing unit data centre infrastructure, and the development and integration of AI-enabled command and control systems among others.
There were also new orders for its cyber solutions and advanced encryption products, the provision of cloud-based managed security services as well as an AI-enabled Operational Technology cybersecurity system for critical infrastructure in the energy sector.
Its land systems business received new orders for 40 mm and 155 mm ammunition from international customers, while its marine sub-segment won various ship repair and maintenance contracts for commercial and naval ships.
Lastly, the group’s urban solutions and satcom segment won various contracts across its various business lines.
Its urban solutions business secured smart mobility contracts to provide rail electronics solutions for the Cross Island Line, upgrade the mobile network for the Downtown Line, and provide managed services for several car parks in Singapore.
In addition, its tolling business in the US received new contracts for electronic road tolling, maintenance and back office solutions.
Its smart utilities and infrastructure business under the segment won contracts to implement integrated smart security management solutions for public sector customers in Singapore. In addition, its satcom business received ground infrastructure contracts for the aviation, maritime, government and defence segments in various regions.
ST Engineering does not expect the new contracts to affect group net tangible assets nor earnings per share for the current financial year.
For FY2024, the group posted S$11.3 billion in revenue and S$702.3 million in net profit, with its order book coming in at S$28.5 billion.
Shares of ST Engineering closed Friday 1.2 per cent or S$0.09 lower at S$7.23 before the news.
