Singapore Technologies Engineering (S63) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 11.6% to $11,276m; EBIT increased 17.7% to $1,076.5m and net profit rose 19.7% to $702.3m, all record levels for revenue and net profit.

• Results reflected growth across all three segments, higher operating cash flow and lower unit operating expenses.

• Year-end order book reached a record $28.5b, with $8.8b scheduled for delivery in 2025.

Financial highlights

• FY2024 revenue was $11,276m (+11.6%); EBITDA $1,614.3m (+10.9%); EBIT $1,076.5m (+17.7%); PBT $862.7m (+22.5%); net profit attributable to shareholders $702.3m (+19.7%).

• 2H2024 revenue increased 9.9% to $5,755m; EBIT rose 17.7% to $553.5m, PBT 26.5% to $446.2m and net profit 19.6% to $365.7m.

• FY2024 operating cash flow rose 46% to $1.7b.

• Gross debt fell from $6.1b to $5.8b; gross debt/EBITDA leverage improved from 4.2x to 3.6x, with FY2024 weighted average borrowing cost at 3.6%.

Outlook and guidance

• Robust order book and competitive market position support confidence in continued revenue growth and performance; $8.8b of orders are expected to be delivered in 2025.

• FY2025 weighted average borrowing cost expected to remain in the mid-3% range.