ST Engineering first-half earnings up 19.7% to $402.8 million
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ST Engineering says overall tariff impact on its first-half results was immaterial after mitigation measures were implemented.
PHOTO: ST ENGINEERING
SINGAPORE - Singapore Technologies Engineering (ST Engineering) on Aug 14 posted a 19.7 per cent increase in net profit to $402.8 million for the first half-year ended June, up from $336.5 million in the year-ago period.
This was driven by revenue growth primarily from its commercial aerospace and defence and public security business segments, despite negative impact from foreign currency exchange and US tariffs.
Earnings per share rose in tandem to 12.93 cents for the first half-year, up from 10.8 cents in the year-ago period.
Revenue increased 7.2 per cent to $5.9 billion, up from $5.5 billion previously.
ST Engineering said revenue would have grown 8 per cent if not for the forex translation impact of a weaker US dollar against the Singapore dollar, while the forex translation impact on net profit was negligible.
The group said overall tariff impact on its first-half results was immaterial after mitigation measures were implemented.
Revenue from the commercial aerospace segment rose 5 per cent to $2.4 billion from $2.2 billion.
Defence and public security revenue grew 12 per cent to $2.7 billion from $2.4 billion, while urban solutions and satellite communications revenue was flat at $921 million.
The group secured $9.1 billion of new contracts in the first half-year, bringing its total order book to $31.2 billion as at end-June. It expects to deliver about $5 billion from the order book in the remainder of 2025.
ST Engineering group president and chief executive Vincent Chong said: “Our strong order book continues to provide revenue visibility for the group.
“Our recent divestments are in line with our portfolio rationalisation strategy to exit non-core businesses and recycle capital. We remain steadfast in strengthening our core businesses.”
ST Engineering has declared an interim dividend of four cents per share for the second quarter, to be paid on Sept 5, unchanged from the payout in the year-ago period.
Shares of ST Engineering fell on Aug 14, despite the higher earnings reported. They closed 6.25 per cent, or 56 cents, lower at $8.40 on Aug 14.
The stock has soared 92 per cent in the year up to Aug 13, when it hit a record high of $8.96. THE BUSINESS TIMES
