ST Engineering Achieves Strong Revenue and Net Profit For 2023

ST Engineering Achieves Strong Revenue and Net Profit For 2023

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  • Order book was $27.4b as at end December 2023, of which about $7.9b is expected to be delivered in 2024
  • Commercial sales1 and defence sales1 constituted $7.1b and $3.0b respectively in 2023
  • Cash and cash equivalents of $353m as at end December 2023
  • N.B. All currencies are in Singapore dollars

ST Engineering FY2023 Financial Statements, ST Engineering Results Presentation FY2023

Singapore, 29 February 2024 - Singapore Technologies Engineering Ltd (ST Engineering) today reported its full-year (FY) financial results ended 31 December 2023.

FY2023 versus FY2022 Group Performance 

ST Engineering posted a 12% year-on-year (y-o-y) increase in Group revenue from $9.0b to $10.1b with contributions from all three segments. Group EBIT improved 24% y-o-y to $915m from $735m. On a base operating performance (BOP) basis excluding TransCore transaction and integration expenses, SatixFy divestment loss and Satcom severance costs, as well as the $72m pension restructuring gain in 2022, Group EBIT would be 40% higher y-o-y. This strong set of results was achieved through a combination of business growth, higher productivity and cost saving initiatives.

Group Profit before tax (PBT) rose 18% to $704m, as compared to $597m a year ago.

Group Profit attributable to shareholders (Net Profit) grew 10% y-o-y to $586m from $535m. On a BOP basis, this would be 24% higher y-o-y, despite higher finance costs. 

FY2023 versus FY2022 Segment Performance Review

  • Commercial Aerospace (CA): Revenue was $3.91b, up 31% from $2.99b, surpassing pre-COVID levels. EBIT grew 12% y-o-y to $337m from $301m. Excluding the one-off pension restructuring gain of $72m in the prior year, CA EBIT would have grown 47% on a BOP basis.

    The CA segment recorded a revenue of $3.91b which exceeded the November 2021 Investor Day (2022-2026) target of over $3.5b set for 2026. As anticipated, its Airbus P2F conversion EBIT turned positive in 2023 at the programme level.

  • Defence & Public Security (DPS): Revenue was flat at $4.25b but would be 6% higher after excluding the revenue from the U.S. Marine business2 in the prior year. The growth was largely driven by its Digital Systems & Cyber sub-segment.

    The Digital business comprising Cloud, AI Analytics and Cyber businesses grew 20% y-o-y to $463m from $385m. This is on track to exceed the November 2021 Investor Day target revenue of over $500m by 2026. The DPS segment delivered robust y-o-y EBIT growth of 40% from $405m to $567m. This strong performance is the result of an avoidance of losses from the U.S. Marine business which was divested in the prior year, improved margin mix, cost savings and growth in its core business.

  • Urban Solutions & Satcom (USS):  Revenue grew 10% y-o-y to $1.94b from $1.77b, largely due to increased revenue from Urban Solutions and partly offset by lower revenue from Satcom. USS EBIT was lower at $10m compared to $29m the year before due to Satcom’s weakness, the divestment loss of SatixFy of $24m and severance costs of $8m as part of Satcom’s restructuring.

    The investment in TransCore was earnings accretive in FY2023, which was three months ahead of plan.

    While Satcom weakness impacted the USS segment, the transformation efforts since mid-2023 are on course to drive better future performance.


“In 2023, our Group achieved significant financial milestones. Group revenue exceeded $10b while Group Net Profit grew 10% year-on-year to $586m.

This performance was underpinned by the strength of our Commercial Aerospace and Defence & Public Security segments, and a high-graded portfolio. Our investment in TransCore became accretive in FY2023, ahead of plan. The strong set of results was also supported by productivity and cost saving measures and investments made during the COVID-19 downturn.

We remain focused on executing our robust order book of $27.4b, while delivering sustainable growth and creating value for our stakeholders.” 

- Vincent Chong, Group President & CEO


In terms of Group revenue breakdown, Commercial Aerospace, Defence & Public Security and Urban Solutions & Satcom accounted for 39%, 42% and 19% respectively. Commercial sales was $7.1b and defence sales was $3.0b. The Group held $353m in cash and cash equivalents as at end December 2023.

Despite inflationary pressures, the Group decreased its unit operating expenses (per unit revenue) from 12.1% in 2022 to 11.4% in 2023, a result of continual focus on implementing structural cost reductions and enhancing operational efficiencies.


2H2023 versus 2H2022 Performance Discussion 

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In 2H2023, Group revenue grew 10% y-o-y to $5.2b from $4.8b due largely to the growth of Commercial Aerospace. Group EBIT increased 34% to $470m from $351m through business growth and cost saving initiatives. Group PBT was up 43% to $353m from $246m. Group Net Profit rose 20% y-o-y to $306m from $255m, bolstered by strong business growth, higher productivity and cost savings.

2H2023 versus 2H2022 Segment Performance Review

  • Commercial Aerospace (CA): Revenue was $2.05b, up 29% y-o-y from $1.59b. EBIT was $160m, 35% higher y-o-y from $118m.
  • Defence & Public Security (DPS): Revenue was about flat at $2.13b but would be 5% higher y-o-y after revenue from U.S. Marine was excluded. EBIT grew 40% y-o-y to $267m from $191m.

  • Urban Solutions & Satcom (USS): Revenue was $1.05b, up 4% y-o-y from $1.01b, with contribution from TransCore partially offset by Satcom. EBIT was $44m, up 7% y-o-y from $41m.

New Contract Wins in 4Q2023 and Order Book 

In 4Q2023, the Group secured new contracts of about $3.1b, comprising $1.0b from Commercial Aerospace, $1.5b from Defence & Public Security and $645m from Urban Solutions & Satcom. This brings the total new contract value for 2023 to $14.8b compared to $13.1b in 2022.

  • Commercial Aerospace clinched new contracts across its manufacturing and MRO businesses. These include CFM56-7B engine heavy maintenance contracts with Chinese airlines, airframe heavy maintenance contract for an American airline and landing gear overhaul contract for an Oceania airline.

  •  Defence & Public Security secured new contracts for its suite of digital solutions and services ranging from Cloud, Data Centre and Training & Simulation to AI-enabled Mission Critical Command and Control systems and Cybersecurity. Land Systems secured new contracts for 40mm ammunition while Marine continued to secure contracts for ship repair and maintenance services, including a contract for the mid-life upgrade of Singapore’s Formidable-class Frigates.

  • Urban Solutions & Satcom secured contracts from global customers across its lines of business. Key wins from Urban Solutions include several contracts for its Platform Screen Door solution for Canada’s Ontario Line, Australia’s Western Sydney Airport Line, and India’s Chennai Metro Line; contracts for All Electronic Tolling systems, Back Office Systems and Operations in the U.S., Intelligent Transport Systems contracts in the Middle East; a multi-year contract with a repeat customer for smart water metering solutions as well as contracts for integrated smart security management solutions in Singapore. Satcom secured ground infrastructure contracts in the government, enterprise and cellular backhaul segments across the U.S., Asia, Middle East and Latin America. 

With these new contract wins, and after adjustments of revenue delivery, ST Engineering ended 2023 with a strong order book of $27.4b. The Group expects to deliver about $7.9b from the order book in 2024.

Final and Total Dividend

The Board of Directors has proposed a final dividend of 4.0 cents per ordinary share. Together with the three quarterly interim dividends of 4.0 cents per ordinary share, the total dividend for the financial year 2023 will be 16.0 cents per ordinary share. This translates to a dividend yield of 4.4%, computed using the average closing share price3 of the last trading day of 2023 and 2022.

1Refers to Group revenue by products and services type.
2U.S. Marine was divested on 14 Nov 2022. 
3The average closing share price for FY2023 of $3.62 is computed based on closing share price of $3.35 for last trading day of 2022; and closing share price of $3.89 for last trading day of 2023.


ST Engineering is a global technology, defence and engineering group with a diverse portfolio of businesses across the aerospace, smart city, defence and public security segments. The Group harnesses technology and innovation to solve real-world problems, enabling a more secure and sustainable world. Headquartered in Singapore, it has operations spanning Asia, Europe, the Middle East and the U.S., serving customers in more than 100 countries. ST Engineering reported a revenue of over $10 billion in 2023 and ranks among the largest companies listed on the Singapore Exchange. It is a component stock of MSCI Singapore, FTSE Straits Times Index and Dow Jones Sustainability Asia Pacific Index.

For further enquiries, please contact:

Lina Poa
Head Investor Relations
ST Engineering


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