ST Engineering expects positive H2 net profit

[SINGAPORE] ST Engineering on Tuesday (Dec 30) said that it expects to report a positive net profit for the second half of 2025, after considering all the one-off effects for the half-year period.

This follows an earlier announcement on Nov 12, in which the group forecast a positive full-year net profit on the back of its strong base operating performance. At the time, it said H2 earnings were being assessed.

For the nine months ended Sep 30, ST Engineering recorded a 9 per cent year-on-year increase in revenue to S$9.1 billion, its latest business update indicated. The improvements followed robust performances across its three business segments and a strong order book.

Year-on-year top-line growth came in at 11 per cent for the commercial aerospace segment; 9 per cent for the defence and public security segment; and 5 per cent for the urban solutions and satcom segment.

For 9M 2025, ST Engineering recorded S$14 billion in contract wins, with its order book at S$32.6 billion as at Sep 30.

It proposed a special dividend of S$0.05 per share, amounting to S$156 million, or around a quarter of the cash proceeds from recent divestments.

ST Engineering said its year-to-date divestments yielded S$594 million in total cash proceeds and S$258 million in divestment gains after tax.

These included cash proceeds of S$335 million from its divestment of its whole stake in ST Engineering LeeBoy, a US-based construction equipment manufacturer.

The company also reaped cash proceeds of S$145 million from its sale of enterprise broadband connectivity provider SPTel, its joint venture with SP Group, and another S$114 million from its unit’s sale of all its shares of taxi operator CityCab.

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ST Engineering posts 9% rise in 9M revenue to S$9.1 billion

If approved by shareholders, the total dividend for FY2025 – including a previously announced interim dividend of S$0.04 per share for Q3 – will be S$0.23 per share.

Under its new dividend policy announced in March and set to take effect from FY2026, ST Engineering plans to pay out a third of its year-on-year increase in net profit as incremental dividends.

Shares of ST Engineering ended Tuesday S$0.07 or 0.8 per cent higher at S$8.44.