Singapore Technologies Engineering (S63) H2 2025 earnings summary

Executive summary

• FY2025 revenue reached $12.35b, up 9% YoY; BOP net profit rose 21% to $851m.

• New contracts rose 49% to $18.7b, lifting the year-end order book to $33.2b; $9.9b is expected to be delivered in 2026.

• Four divestments generated $705m in net cash proceeds; $689m in non-cash impairment losses were partly offset by $301m in divestment gains.

• Operating cash flow was $1.7b, with $0.7b in divestment proceeds; return on equity reached 28.7%.

Financial highlights

• BOP EBITDA rose 10% to $1.77b, EBIT increased 16% to $1.24b, and PBT grew 20% to $1.04b.

• Reported net profit was $463m, reflecting $689m in impairments partly offset by $301m in divestment gains.

• 2H2025 revenue rose 12% YoY to $6.43b; BOP EBIT increased 16% to $641m and net profit grew 22% to $448m.

• Commercial sales were $8.6b and Defence sales were $3.8b; underlying revenue grew 11% excluding FX impacts and divestments.

Outlook and guidance

• $9.9b of the $33.2b order book is expected to be delivered in 2026, supporting revenue visibility and progress toward 2029 targets.

• Targeting to double international defence contract wins in 2026; large defence contract timing remains lumpy and dependent on customer priorities.

• Satcom expects stronger revenue and cost savings in 2026, including $63m in annualized savings from 3Q 2026.

• 2026 dividend guidance is $0.18 per share plus one-third of incremental net profit, excluding one-offs.