Singapore Technologies Engineering (S63) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 7% year over year to SGD 5,916m; EBIT increased 15% to SGD 602.2m and net profit rose 19.7% to SGD 402.8m.

• Growth across all three segments and a SGD 31.2b order book supported performance; SGD 9.1b of new contracts were secured in H1.

• Portfolio rationalisation continued through LeeBoy and SPTel divestments, expected to generate SGD 450m in net proceeds and SGD 180m in net investment gain.

Financial highlights

• Revenue was SGD 5,916m (+7%); growth would have been 8% excluding foreign-exchange translation impact.

• EBIT was SGD 602.2m (+15%), net profit SGD 402.8m (+19.7%), and EBITDA SGD 871.3m (+10.8%).

• EPS rose to 12.93 cents from 10.80 cents; profit after tax margin increased to 7.0% from 6.3%.

• Net cash from operating activities was SGD 761m, down from SGD 809m due to working capital movements.

Outlook and guidance

• The SGD 31.2b order book provides revenue visibility; SGD 5.0b is expected to be delivered in the remaining months of 2025.

• Focus remains on core business growth and executing the growth strategy, with recent divestments supporting portfolio rationalisation and capital recycling.

• Underlying momentum is expected to continue in line with the five-year plan; Commercial Aerospace is expected to outperform industry growth rates.