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, a low-cost airline based in India.
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 MRO agreement with a European airline.
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The aerostructures and systems sub-unit of the commercial aerospace segment 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.
The marine business 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 MRT lines in Singapore.
Meanwhile, smart utilities and infrastructure contracts included a monitoring project for building structural health, 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 a material impact on the group’s consolidated net tangible 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.
