ST Engineering Delivered Strong Base Operating Performance in 2025 as Order Book Grows

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• Order book was $33.2b as at end December 2025, of which about $9.9b is expected to be delivered in 2026
• Commercial sales^[2] and defence sales^[2]constituted $8.6b and $3.8b respectively in 2025
• Cash and cash equivalents of $576m as at end December 2025
  
  N.B. All currencies are in Singapore dollars

ST Engineering FY2025 Financial Statements, ST Engineering FY2025 Results Presentation

Singapore, 27 February 2026  - Singapore Technologies Engineering Ltd (ST Engineering) today reported its full-year (FY) financial results ended 31 December 2025. Group revenue was $12.35b and Reported Net Profit was $463m, reflecting non-cash impairment losses partially offset by gains from divestments.

On a base operating performance (BOP) basis, the Group reached new highs in revenue and profits. It ended the year with a revenue of $12.35b, up 9% year-on-year (y-o-y) from $11.28b, contributed by all three segments. Group BOP EBIT was $1.24b, up 16% y-o-y from $1.08b and Group BOP PBT was $1.04b, up 20% y-o-y from $863m. Group BOP Net Profit grew 21% to $851m from $702m the year before. Adjusted for LeeBoy, which was divested in September 2025, rebased Group revenue was 11% higher y-o-y.

FY2025 versus FY2024 Segment BOP Performance 

• Commercial Aerospace: Revenue was $4.99b, up 14% from $4.38b the year before. Its BOP EBIT rose 22% y-o-y to $487m from $400m. The improved performance was mainly contributed by higher revenue from Engine MRO and Nacelles, and stronger margin mix.
• Defence & Public Security: Revenue was $5.33b, up 8% y-o-y from $4.94b and its BOP EBIT rose 14% y-o-y to $725m from $636m, with contributions from all sub-segments. Adjusted for LeeBoy, its rebased revenue was 11% higher.
• Urban Solutions & Satcom: Revenue was $2.03b, up 4% from $1.96b the year before. BOP EBIT was $32m, lower compared to $40m for the prior year, reflecting higher EBIT losses in Satcom, partially offset by higher EBIT from URS.

“In 2025, the Group delivered excellent underlying performance, reflecting the strength and resilience of our businesses. We continued to streamline our portfolio through several divestments, recycling our capital and enhancing our focus on our core businesses.

Looking ahead, supported by strong growth momentum and a robust order book, the Group is well positioned to deliver on our strategic objectives and 2029 targets."

Vincent Chong, Group President & CEO

In terms of Group revenue breakdown, Commercial Aerospace, Defence & Public Security and Urban Solutions & Satcom accounted for 40%, 43% and 16% respectively. In the year, the Group generated strong operating cash flow of $1.7b and divestment proceeds of $0.7b, enabling reinvestment for growth, debt reduction as well as value return to shareholders through higher dividends.

In 2025, the Group’s unit operating expenses (per unit revenue) declined from 10.6% in 2024 to 10.2% in 2025, driven by continued focus on cost management, productivity, enhanced operational efficiencies and scale.

Following the divestments in 2025, there will not be any EBIT contribution from these divested entities in 2026. However, the 2026 EBIT reduction y-o-y due to these divested entities is expected to be offset by savings in interest and tax expense with the divestment proceeds applied to reduce group debt.

2H2025 versus 2H2024 Group Performance

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In 2H2025, Group revenue grew 12% y-o-y to $6.43b from $5.76b and Reported Net Profit was $60m. On a BOP basis, Group EBIT was 16% higher y-o-y at $641m from $554m and Group PBT was up 21% y-o-y to $539m from $446m. Group BOP Net Profit grew 22% y-o-y to $448m from $366m. Adjusted for LeeBoy, rebased Group revenue was 14% higher y-o-y.

2H2025 versus 2H2024 Segment BOP Performance 

• Commercial Aerospace: Revenue was $2.64b, up 23% y-o-y from $2.15b. Its BOP EBIT grew 25% y-o-y to $263m from $210m.
• Defence & Public Security: Revenue was $2.69b, up 5% y-o-y from $2.56b. Its BOP EBIT grew 15% y-o-y to $358m from $312m. Adjusted for LeeBoy, its rebased revenue was 9% higher y-o-y.
• Urban Solutions & Satcom: Revenue was 6% higher y-o-y at $1.1b from $1.04b. Its BOP EBIT was $20m, compared to $31m in the prior year mainly due to higher Satcom losses and project mix.

Strong Contract Wins in 2025 Drive Order Book Growth 

In 2025, the Group secured $18.7b of new contracts, a 49% y-o-y increase. Of this, about $4.7b was secured in the fourth quarter. This comprised $1.7b from Commercial Aerospace, $2.5b from Defence & Public Security and $0.5b from Urban Solutions & Satcom.

With these contract wins, and after adjustments for revenue delivery, ST Engineering ended 2025 with a robust order book of $33.2b. The Group expects to deliver about $9.9b from this order book in 2026.

Total Dividend of 23 Cents, including Special Dividend 

The Board of Directors has proposed a final dividend of 6.0 cents per ordinary share and a special dividend of 5.0 cents per ordinary share, subject to shareholder approval at the AGM on 23 April 2026. Including the interim dividends of 12.0 cents per ordinary share paid for FY2025, the total dividend for FY2025 will be 23.0 cents per ordinary share. This translates to a dividend yield of 3.52%, computed using the average closing share price ^[3]of the last trading day of 2025 and 2024.

For FY2025, total shareholder return was 84.2%, driven by share price gains and higher dividends, including the proposed final dividend and special dividend.

Notes:
^[1] Base Operating Performance (BOP) refers to reported financial results adjusted to exclude (i) gains on divestments of subsidiary, LeeBoy, as well as shareholding interests in CityCab, SPTel and STARCO, and (ii) one-off impairment losses related to iDirect group and Jet-Talk
^[2] Refers to Group revenue by products and services type
^[3] The average closing share price for FY2025 of $6.54 is computed based on closing share price of $4.66 for last trading day of 2024; and closing share price of $8.42 for last trading day of 2025.

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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 revenue of over $12b in 2025 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 Best-in-Class Asia Pacific Index.

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