ST Engineering Reports 9% Revenue Growth in Q3 2026, Declares Interim Dividend

SINGAPORE – ST Engineering has announced a 9% year-on-year increase in revenue for the third quarter of 2026, reaching S$3.4 billion (approximately US$2.5 billion), up from S$3.1 billion (about US$2.3 billion) in the same period last year. The company declared an interim dividend of S$0.05 (US$0.037) per share, an increase from S$0.04 (US$0.03) the previous year, bringing the total dividends for the first three quarters of 2026 to S$0.14 (US$0.10) per share.

For the first nine months of 2026, ST Engineering reported a revenue increase of 10% to S$10 billion (US$7.3 billion), compared to S$9.1 billion (US$6.6 billion) in the same period last year. Excluding the divestment of its US-based construction equipment business, LeeBoy, revenue growth on a rebased basis was 13%. The defence and public security segment remained the largest contributor, generating S$4.3 billion (US$3.1 billion), a 7% increase year on year.

In the third quarter alone, revenue from this segment rose 8% to S$1.4 billion (US$1 billion), or 12% on a rebased basis. The growth was primarily driven by the marine, digital systems, and cybersecurity sectors. Notably, ST Engineering secured S$5.5 billion (US$4 billion) in new contracts in the first nine months, including S$1.8 billion (US$1.3 billion) in the third quarter. Significant contracts included a five-year agreement to supply 40mm ammunition to the UK Ministry of Defence and projects involving defence command-and-control systems in Singapore.

“The increase was led by marine and digital systems and cybersecurity businesses.”ST Engineering, financial report

Additionally, the commercial aerospace segment reported a 12% revenue increase to approximately S$4.1 billion (US$3 billion) in the first nine months, bolstered by higher contributions from engine maintenance and nacelles. The third quarter saw a 7% revenue rise to S$1.4 billion (US$1 billion). The segment secured S$4.2 billion (US$3 billion) in new contracts during the first nine months, including a maintenance contract for the Airbus A220 with an Asia-Pacific operator.

The urban solutions and satellite communications segment also performed well, with revenue increasing 15% year on year to about S$1.7 billion (US$1.2 billion) in the first nine months. In the third quarter, revenue rose 15% to S$600 million (US$440 million). Contract wins in this segment included projects for the Taoyuan MRT Brown Line and Green Line Extension in Taiwan and smart security management solutions in Singapore.

“We are exploring long-term opportunities in the nuclear energy sector, leveraging our capabilities in complex, safe and mission-critical environments.”ST Engineering, corporate statement

Across the group, total contract wins amounted to S$13.2 billion (US$9.6 billion) in the first nine months, including S$5.6 billion (US$4.1 billion) in the third quarter. The order book reached a record S$37.7 billion (US$27.5 billion) as of September, up from S$33.2 billion (US$24 billion) at the end of 2025, with approximately S$3.1 billion (US$2.3 billion) expected to be delivered in the remainder of 2026.

ST Engineering also reported a record-low operating expenses-to-revenue ratio of 9% for the first nine months, compared to 10.2% for the entire year of 2025. The company is exploring long-term opportunities in the nuclear energy sector, leveraging its expertise in complex, mission-critical environments. Current collaborations include partnerships with the Agency for Science, Technology and Research and Sembcorp Utilities, focusing on advanced materials for fusion reactors.

Following the announcement, ST Engineering's shares closed down 0.9% at S$9.67 (US$7.08) on November 13.