Singapore Technologies Engineering (S63) H1 2026 earnings summary

Executive summary

• 1H2026 revenue rose 11.1%, EBIT increased 22.6% and net profit grew 27.1%, with earnings growth outpacing revenue growth.

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

• Record order book of SGD 35.7b at 30 June 2026 supports multi-year revenue visibility.

• Strong order book and pipeline underpin confidence in finishing 2026 strongly.

Financial highlights

• Revenue was SGD 6.573b, up 11.1% year-on-year; rebased growth was 14%.

• EBIT rose 22.6% to SGD 738.0m; net profit attributable to shareholders increased 27.1% to SGD 512.1m.

• EBITDA increased 13.3% to SGD 986.8m; EPS rose to 16.43 cents from 12.93 cents.

• Operating cash flow increased 26% to SGD 960m from SGD 761m.

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

Outlook and guidance

• SGD 5.7b of the order book is expected to be delivered in the remainder of 2026; confidence remains in a strong year-end finish.

• Full-year contract wins are expected to match or exceed 2025’s SGD 18.7b, with potential upside.

• Net profit CAGR is expected to outpace revenue CAGR by up to 5 percentage points through 2029; digital is tracking a year ahead of its 2029 revenue targets.

• Satcom targets positive EBIT in 4Q2026 and FY2027.