ST ENGINEERING on Thursday (Feb 6) announced that it secured S$4.3 billion in new contracts in the fourth quarter of 2024.
These comprise S$1.8 billion from the commercial aerospace segment, S$1.7 billion from the defence and public security segment, and S$700 million 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.
This reflects the group’s strong market position and continued demand for aerospace solutions, underpinned by strong aviation demand, said ST Engineering.
One of the new MRO contracts is a 15-year exclusive contract with Akasa Air to suppport the airlines’ Leap-1B engines in their first performance restoration shop visit.
The other contracts include a six-year airframe heavy maintenance contract to support a US-based airline’s Boeing 787 fleet, and an exclusive five-year Leap-1A nacelle MRO agreement with a European airline.
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For its aerostructures and systems sub-unit, commercial aerospace continued to receive orders for nacelles and composite floor panels in support of aircraft original equipment manufacturers’ production.
Separately, the defence and public security segment won new orders across its business lines.
For instance, the land systems business signed a strategic partnership contract with Kazakhstan Paramount Engineering to provide engineering and technical expertise for a new eight by eight amphibious multipurpose armoured vehicle. It will be based on ST Engineering’s proven Terrex eight by eight infantry fighting vehicle.
The contract, announced in December 2024, marked ST Engineering’s entry into a new market in Central Asia.
Meanwhile, the digital systems business scored a contract to develop a high-performance artificial intelligence (AI) cloud infrastructure, as well as AI-enabled command and control systems and training and simulation solutions.
The cyber sub-segment secured new contracts for its cyber solutions and advanced encryption products, as well as the provision of cloud-based managed security services for a customer in Asean.
As for the marine business, it won a shipbuilding contract to design and build a “’walk-to-work” vessel for a leading oil and gas company, as well as various ship repair and maintenance contracts for both commercial and naval ships.
In urban solutions and satcom, business units secured contracts to provide smart metro solutions in Bangkok and Kaohsiung, as well as passenger information systems for the North-South and East-West Lines in Singapore.
Meanwhile, smart utilities and infrastructure contracts included a building structural health monitoring project and integrated smart security management solutions for customers in Singapore.
Satcom received ground infrastructure contracts for the aviation, government and enterprise segments in various regions.
ST Engineering does not expect the contracts to have any material impact on the group’s consolidated net tangle assets per share and earnings per share for the current financial year.
Shares of ST Engineering closed 0.2 per cent or S$0.01 higher at S$4.83, before the announcement.
