SINGAPORE – ST Engineering’s revenue for the third quarter ended September rose 9% year on year to $3.4 billion, from $3.1 billion in the previous corresponding period, the group said on Nov 13.
The technology and engineering company declared a third-quarter interim dividend of five cents per share, up from four cents a year earlier. Its Q1 and Q2 dividends were four cents and five cents per share, respectively, bringing the total for the first three quarters to 14 cents per share.
For the first nine months of 2026, revenue increased 10% to $10 billion, from $9.1 billion in the same period a year earlier. Excluding LeeBoy, its US-based construction equipment business divested on Sept 4, 2025, revenue grew 13% on a rebased basis.
Defence and public security was the group’s largest revenue contributor for the nine-month period, generating some $4.3 billion, up 7% year on year. Excluding LeeBoy, revenue from the segment grew 13%. Q3 revenue rose 8% to $1.4 billion, or 12% on a rebased basis.
The increase was led by marine and digital systems and cybersecurity businesses. The segment secured $5.5 billion in new contracts in the first nine months, including $1.8 billion in Q3.
These included a five-year contract to supply 40mm ammunition to the British Ministry of Defence, projects involving defence command-and-control systems in Singapore, and maintenance and support services for the US Navy’s fleet.
Meanwhile, commercial aerospace revenue rose 12% to about $4.1 billion in the first nine months, supported by higher contributions from engine maintenance, repair and overhaul work and nacelles, a container for aircraft parts. Revenue for Q3 increased 7% to $1.4 billion.
The segment secured $4.2 billion in new contracts in the first nine months, of which $1.4 billion was won in Q3. The latest wins included its first Airbus A220 airframe heavy maintenance contract with an Asia-Pacific operator and airframe maintenance agreements with Asia-Pacific airline customers.
Revenue from urban solutions and satellite communications increased 15% year on year to about $1.7 billion in the first nine months. Q3 revenue also rose 15% to $600 million, with higher contributions from both businesses.
The segment secured $3.5 billion in new contracts in the nine-month period, including $2.4 billion in Q3.
Wins included turnkey rail services for the Taoyuan MRT Brown Line and Green Line Extension in Taiwan, integrated smart security management solutions contracts in Singapore and tolling infrastructure modernisation work for the Tampa-Hillsborough Expressway Authority in the US.
Across the group, contract wins totalled $13.2 billion in the first nine months, including $5.6 billion in the third quarter. The nine-month figure excluded $1.7 billion in New Jersey Turnpike Authority order book recognition.
The group’s order book stood at a record $37.7 billion as at September, up from $33.2 billion as at end-2025. About $3.1 billion is expected to be delivered in the remainder of 2026.
ST Engineering also reported a record-low operating expenses-to-revenue ratio of 9% for the first nine months, compared with 10.2% for the whole of 2025. The 2025 figure excluded a one-off impairment loss of iDirect group.
Nuclear energy
Separately, ST Engineering said it is exploring long-term opportunities in the nuclear energy sector, drawing on its capabilities in complex, safe and mission-critical environments and partnering organisations with complementary expertise.
Its current collaborations include those with the Agency for Science, Technology and Research, Sembcorp Utilities and Commonwealth Fusion Systems. Areas of activity include factory-fabricated structural modules, such as protective steel structures, and advanced materials for fusion reactors, including tungsten coatings for reactor’s inner walls.
The group also sees opportunities to apply its capabilities in digital twin technology and artificial intelligence, advanced materials and manufacturing, and large-scale systems integration.
Shares of ST Engineering were up 0.2% or two cents to close at $9.76 on Nov 12. THE BUSINESS TIMES
