ST Engineering bags new contracts worth S$4.7 billion in Q2 2025

[SINGAPORE] ST Engineering on Wednesday (Jul 23) announced that it secured S$4.7 billion in new contracts in the second quarter of 2025.

These comprise S$1.5 billion from the commercial aerospace segment, S$1.5 billion from the defence and public security segment, and S$1.7 billion from the urban solutions and satcom segment.

The commercial aerospace segment clinched several new contracts across its maintenance, repair and overhaul (MRO), as well as its aerostructures and systems sub-units.

Some of the MRO contracts include a component services agreement with a South-east Asian airline, an offload contract with a major engine original equipment manufacturer, as well as a five-year agreement with Air Cairo.

The aerostructures and systems sub-unit of the commercial aerospace segment secured several passenger-to-freighter orders, including one from Confity Capital Partners, a Dubai-based global financial advisory and growth equity firm.

ST Engineering noted that demand for nacelles and composite floor panels remained steady, supported by increasing new aircraft production.

Separately, the defence and public security segment won new orders across its business lines.

For instance, the digital systems business was awarded contracts by Singapore’s Ministry of Defence to provide a suite of mine countermeasure unmanned systems to detect and eliminate underwater mines. This includes a fleet of unmanned surface vessels and autonomous underwater vehicles.

Meanwhile, the segment also scored contracts to implement data centre services, training and simulation, as well as develop and integrate command and control systems that are enabled by artificial intelligence, among other things.

The cyber sub-segment secured new contracts for its advanced encryption products and the provision of cloud-based managed security services, and a cyber range for a customer in Asia.

The land system business secured orders for ammunition as well as weapon MRO services, while the marine segment won various ship repair and maintenance contracts for commercial and naval ships.

The defence aerospace business also won contracts to provide MRO services for international customers, including a North African air force.

ST Engineering also won contracts to provide turnkey rail services for the Taichung MRT Blue Line, as well as its platform screen door solution for the Chennai Metro project and the Xidong Line in New Taipei City.

Meanwhile, smart utilities and infrastructure contracts included integrated smart security management projects for implementation in Singapore.

Satcom received ground infrastructure contracts for the government, defence and enterprise segments in the US, Europe and the Middle East.

ST Engineering does not expect the contracts to have a material impact on the group’s consolidated net tangible assets per share and earnings per share for the current financial year.

Shares of the company closed 2.13 per cent or S$0.18 lower at S$8.27, before the announcement.