Singapore Technologies Engineering (S63) H1 2024 earnings summary

Executive summary

• 1H2024 revenue rose 13.5% year-on-year to $5.52b; net profit increased 19.9% to $336.5m.

• Order book stood at $27.9b at June-end, with $4.9b expected to be delivered in the remainder of 2024.

• Secured $6.1b in new contracts in 1H2024, including $3.1b in 2Q.

• Interim dividend of 4.0 cents per share approved for payment on 5 September 2024; total 1H2024 dividends were 8.0 cents per share.

Financial highlights

• EBIT increased 17.7% to $522.9m; base operating performance EBIT grew 11%.

• EBITDA rose 10.6% to $786.1m; gross profit increased 7.4% to $1.05b.

• Adjusted net profit increased 12% year-on-year.

• EPS rose to 10.80 cents from 9.01 cents; profit after tax margin improved to 6.3% from 5.9%.

• Commercial revenue was $3.9b and defence revenue was $1.6b in 1H2024.

Outlook and guidance

• Confidence in long-term growth, supported by the order book and opportunities in aerospace, smart city, defence and public security.

• Full-year 2024 performance expected to surpass 2023; Urban Solutions & Satcom is second-half weighted.

• No material impact anticipated from the pause in New York Congestion Pricing for Urban Solutions & Satcom.

• Satcom remains loss-making and is focused on transformation and migration to new platforms.