ST Engineering's order book hits record $37.7B as Q3 revenue climbs 9%

The Singapore technology and engineering group booked $3.4 billion of revenue in the three months to September, up 9% from $3.1 billion a year earlier. It declared a third-quarter interim dividend of five cents per share, one cent more than a year ago, bringing the total for the first three quarters to 14 cents after payouts of four and five cents.

For the first nine months, revenue climbed 10% to $10 billion, and grew 13% on a rebased basis once LeeBoy, its US construction equipment arm sold off on Sept 4, 2025, is stripped out. The order book swelled to a record $37.7 billion as at September, up from $33.2 billion at the end of 2025, with about $3.1 billion of that expected to land in the rest of the year. Contract wins reached $13.2 billion across the nine months, $5.6 billion of it in the third quarter, a tally that leaves out $1.7 billion in New Jersey Turnpike Authority order book recognition. Operating expenses fell to a record-low 9% of revenue, down from 10.2% for all of 2025.

:defence and public security stayed the biggest earner, pulling in roughly $4.3 billion over nine months, up 7% and up 13% excluding LeeBoy. Its third-quarter revenue rose 8% to $1.4 billion, or 12% on a rebased basis. The segment locked in $5.5 billion in fresh contracts, including $1.8 billion in the quarter — a five-year deal to supply 40mm ammunition to the British Ministry of Defence, command-and-control projects in Singapore and maintenance support for the US Navy's fleet.

Commercial aerospace revenue rose 12% to about $4.1 billion in the nine months, with third-quarter revenue up 7% to $1.4 billion, helped by engine maintenance, repair and overhaul work and nacelles. The segment won $4.2 billion in contracts, $1.4 billion of it in the quarter, including its first Airbus A220 airframe heavy maintenance job with an Asia-Pacific operator and airframe maintenance agreements with regional airlines.

Urban solutions and satellite communications grew fastest, up 15% to about $1.7 billion over nine months, with third-quarter revenue also up 15% to $600 million. It notched $3.5 billion in contract wins, $2.4 billion in the third quarter, spanning turnkey rail work on Taiwan's Taoyuan MRT Brown Line and Green Line Extension, smart security management deals in Singapore and tolling modernisation for the Tampa-Hillsborough Expressway Authority in the US.

Beyond its core businesses, ST Engineering said it is exploring long-term opportunities in nuclear energy, leaning on its record in complex, mission-critical environments. It is working with the Agency for Science, Technology and Research, Sembcorp Utilities and Commonwealth Fusion Systems on areas including factory-fabricated structural modules such as protective steel structures, and tungsten coatings for fusion reactor inner walls. The group also flagged digital twin technology, artificial intelligence, advanced materials and large-scale systems integration as openings. Shares closed at $9.76 on Nov 12, up 0.2%.