Singapore Technologies Engineering (S63) H1 2026 earnings summary

Executive summary

• Achieved record-high first half 2026 results, with revenue up 11% to $6.57 billion and net profit up 27% to $512.1 million, driven by robust growth across all segments.

• Earnings growth outpaced revenue growth, reflecting improved operational efficiency and cost discipline.

• Strong order book of $35.7 billion provides multi-year revenue visibility and supports continued growth.

• Interim dividend of 5.0 cents per share declared for 2Q2026.

• All business segments contributed to growth, with digital business and international defense showing exceptional momentum.

Financial highlights

• Revenue grew 11% year-on-year to $6.57 billion; underlying growth was 15.5% excluding divestments and FX.

• Net profit rose 27% year-on-year to $512.1 million, the highest half-year profit on record.

• EBIT increased 23% to $738 million; EBITDA rose to $987 million; operating cash flow up 26% to $960 million.

• Earnings per share increased to 16.43 cents from 12.93 cents year-over-year.

• Commercial revenue up 11% to $4.6 billion; defense revenue up 12% to $2 billion.

Outlook and guidance

• Confident of finishing 2026 strongly, with all segments targeting continued growth in H2 and well on track to achieve 2029 targets.

• Full-year contract wins expected to match or exceed 2025’s $18.7 billion, with potential upsides.

• Net profit CAGR expected to outpace revenue CAGR by up to 5 percentage points through 2029.

• Satcom business targets EBIT positive for Q4 2026 and FY2027.

• Digital business tracking a year ahead of 2029 revenue targets.