Singapore Technologies Engineering (S63) Q3 2024 TU earnings summary

Executive summary

• Group revenue for 9M2024 reached $8.3b, up 14% year-over-year, driven by strong growth in Defence & Public Security (DPS) and Commercial Aerospace (CA); Urban Solutions & Satcom (USS) was flat.

• Order book remains robust at $26.9b as of 30 Sep 2024, with $8.3b in new contracts secured during 9M2024.

• 3Q2024 interim dividend declared at 4 cents per share.

Financial highlights

• 3Q2024 revenue was $2.78b, up 14% from 3Q2023.

• DPS revenue for 9M2024 grew 18% year-over-year to $3.6b; CA revenue rose 16% to $3.3b; USS revenue was stable at $1.4b.

• $2.2b in new contracts won in 3Q2024.

Outlook and guidance

• Management highlights continued strong demand in DPS and CA, with CA expanding hangar capacity by 30% from 2026 and preparing for increased LEAP engine maintenance.

• Satcom segment focusing on sales capture and new product launches, including Intuition 1.0 in Sep 2024.