ST Engineering (SGX: S63) Stock on 10 December 2025: Special Dividend, Record Order Book and 2026 Outlook

Singapore – 10 December 2025

Singapore Technologies Engineering Ltd – better known as ST Engineering (SGX: S63, S63.SI) – is ending 2025 as one of the more closely watched blue chips on the Singapore Exchange. After a year of record earnings, chunky contract wins and a surprise special dividend, the stock is now trading near the upper end of its 52‑week range while analysts debate how much upside is left.

ST Engineering share price today

On Wednesday, 10 December 2025, ST Engineering’s share price closed at around S$8.24, after trading in a tight intraday band between about S$8.24 and S$8.31. Volume came in at roughly 348,000 shares, much lower than the spike seen right after November’s business update. ^[1]

For context:

The stock’s 52‑week high is about S$9.07, while the 52‑week low is roughly S$4.47, underscoring how much the counter has re‑rated over the past year. ^[2]
As of 9 December, ST Engineering’s market capitalisation was about S$25.6 billion. ^[3]

Price action in recent days has been mostly sideways. Technical research from StockInvest characterises S63 as trading in a wide horizontal range, with a 90% probability of staying between about S$7.91 and S$8.79 over the next three months. Short‑term indicators flash a buy signal, while longer‑term moving averages still point to caution, leading their system to label the stock a short‑term “sell candidate” despite relatively low day‑to‑day volatility. ^[4]

Strong 9M 2025 results and record order book

The fundamental story is much more exciting than the last couple of ticks on the screen.

In a 9M 2025 business update released on 12 November, ST Engineering reported: ^[5]

Revenue of S$9.1 billion, up 9% year‑on‑year for the nine months ended 30 September 2025.
Broad‑based growth across all three segments:
- Commercial Aerospace (CA): +11% revenue growth
- Defence & Public Security (DPS): +9%
- Urban Solutions & Satcom (USS): +5% ^[6]
3Q 2025 revenue of about S$3.1 billion, up 13% year‑on‑year. ^[7]

On the order‑book side, the numbers are hefty:

New contract wins of S$4.9 billion in 3Q 2025, spread across:
- ~S$1.4b from Commercial Aerospace
- ~S$2.4b from Defence & Public Security
- ~S$1.1b from Urban Solutions & Satcom ^[8]
Total contract wins of S$14.0 billion in the first nine months of 2025. ^[9]
A record order book of S$32.6 billion at end‑September 2025, with roughly S$2.8 billion scheduled for delivery in the remainder of 2025. ^[10]

Maybank Research notes that growth is “broad‑based”, with Commercial Aerospace buoyed by engine MRO and nacelle work, DPS benefiting from international defence demand, and USS notching its second consecutive quarter of over S$1 billion in order wins, particularly from rail and healthcare projects in Singapore. ^[11]

This builds on already strong momentum: ST Engineering delivered record revenue and net profit in FY2024, setting a higher base from which 2025 is growing. ^[12]

Special dividend and a fatter payout in 2025

The headline that lit up local markets in November was not just revenue growth, but a surprise special dividend.

According to the company’s business update and subsequent coverage by The Business Times: ^[13]

ST Engineering is proposing a special dividend of S$0.05 per share for FY2025, funded by recent divestment gains.
Together with regular dividends, total FY2025 payout is guided at S$0.23 per share, subject to shareholder approval.
This includes a 3Q 2025 interim dividend of S$0.04 per share, which went ex‑dividend on 21 November and was paid on 5 December 2025. ^[14]

A Simply Wall St note framed this as a “triple” payout – a regular interim dividend, a final dividend, and the one‑off special distribution announced around the 9M 2025 update. ^[15]

At today’s share price around S$8.24, a total dividend of S$0.23 implies a prospective yield of roughly 2.8%, before factoring in any future changes to the payout. (That’s 23 cents divided by S$8‑plus – not a REIT‑style yield, but notable for a defence and engineering growth name.) ^[16]

Portfolio pruning and the iDirect satellite impairment

The rosy dividend story is partly funded by a serious bit of portfolio surgery.

ST Engineering has been reshaping its portfolio through divestments and a major write‑down of its underperforming satellite communications business, iDirect:

Non‑cash impairment of iDirect: The group has impaired about S$667–689 million of iDirect’s carrying value, after reassessing the business at roughly S$170 million versus a book value of S$837 million. ^[17]
The impairment reflects:
- Tougher satellite‑comms landscape, with non‑geostationary operators growing and GEO operators launching fewer satellites
- Slower‑than‑expected customer adoption of its next‑gen Intuition platform
- Continued losses: 9M 2025 revenue and EBITDA for iDirect fell 9% and 22% year‑on‑year, and FY2024 EBIT loss was about S$89 million. ^[18]

At the same time, ST Engineering divested LeeBoy, SPTel and CityCab, generating cash proceeds of about S$594 million and post‑tax divestment gains of about S$258 million. Roughly a quarter of these proceeds – S$0.05 per share – is set aside for the special dividend. ^[19]

Management has said it is exploring “strategic options” for iDirect to reduce risk and financial exposure while enabling the unit to better serve customers, though there is no binding deal at this stage. ^[20]

From an investor’s perspective, the impairment is painful on paper but removes a long‑running overhang; several analysts have framed it as “clearing the decks” so the stronger defence and aerospace engines can stand out more clearly. ^[21]

How the market reacted: November spike, December consolidation

The market didn’t ignore the special dividend and record order book.

On 13 November, the day after the 9M update: ^[22]

ST Engineering’s share price jumped as much as 4.1% intraday to S$8.74,
Before closing at S$8.68, up 4.7% from the previous day,
With around 12.5 million shares traded – far above normal turnover.

The Business Times highlighted that the shares “have been on a tear this year, hitting successive records,” helped by the series of large contract wins and a string of positive updates about defence and aerospace demand. ^[23]

Since then, the stock has cooled off and is now sitting around S$8.20–S$8.30, near the middle of the sideways range identified by technical analysts. StockInvest’s model currently: ^[24]

Flags support around S$8.18 and near‑term resistance around S$8.30,
Notes an oversold RSI14 around 22,
And still tags the name a short‑term “sell candidate”, expecting weak performance over the next few days or weeks unless it breaks above long‑term moving averages around S$8.41.

In other words: fundamentally strong, technically pausing for breath.

Analyst ratings, price targets and valuation

If you lined up the brokers, you’d get a broadly bullish wall with some valuation‑driven sceptics standing at the back.

Consensus targets

Different data platforms paint a similar picture of modest upside from current levels:

Beansprout (using SGX data) puts consensus target price at S$8.70, implying about 5.5% upside from a spot price of S$8.25 on the morning of 10 December. ^[25]
TradingView aggregates 13–15 analysts with a 1‑year target of S$8.99, and a range from S$7.28 (bearish) to S$10.50 (bullish). The overall 3‑month rating summarises as “Buy.” ^[26]
Yahoo Finance shows a similar average target around S$8.77, with S$6.70 low and S$10.50 high. ^[27]

Taken together, the street seems to see mid‑single‑digit to high‑single‑digit percentage upside from today’s price, plus dividends.

House views

Drilling into individual brokers:

Maybank Research titled its November note “Steady Growth; Steep Valuation”.
- It highlights strong earnings visibility and a record order book, but calls the risk‑reward “balanced” at current levels.
- The stock is trading around 28x 12‑month forward P/E versus a historical mean of about 19.5x, leading Maybank to maintain a HOLD rating and keep its target price unchanged. ^[28]
Citi’s Luis Hilado, writing after the 9M update, set a target price of S$8.29 with a “neutral” call, citing continued momentum in defence orders in Europe, the Middle East and Asia, while noting that the impairment’s impact on recurring profit (and thus dividend capacity) is limited. ^[29]
An OCBC Investment Research digest referenced by The Edge Singapore pegs fair value at about S$9.03 with a “Hold” rating, describing ST Engineering’s growth story as intact but its risk‑reward profile as balanced at current valuations. ^[30]
A separate DCF‑based note via POEMS keeps a neutral stance with a target price around S$8.20, arguing that at roughly 30x FY2025 earnings, the stock has already priced in strong near‑term growth, even though the removal of loss‑making iDirect is positive for cash flow and sentiment. ^[31]

On the other side, platforms like Beansprout show that many of the earlier 2025 calls from CGSI, DBS, Maybank, OCBC, Phillip, RHB and UOB Kay Hian were broadly BUY/ADD/ACCUMULATE, with target prices mostly in the S$7.4–S$8.3 range at that time – all of which have effectively been met or exceeded by the current share price. ^[32]

The consensus vibe: business great, valuation no longer obviously cheap.

Short‑term technical picture: sideways with a slight frown

Technical research from StockInvest on 9 December 2025 provides a snapshot of how chartists see S63: ^[33]

The stock gained 0.49% that day, closing at S$8.23, moving within a 1.23% intraday range.
It trades with low daily volatility (~1.25% average over the past week) and healthy volume (about 3 million shares on 9 December).
Indicators show:
- Short‑term moving averages: buy signal
- Long‑term moving averages & 3‑month MACD: sell signal
- RSI14 around 22, putting the counter in oversold territory.

Their conclusion is paradoxical but reasonable: fundamental momentum plus an oversold RSI, but a chart that still looks vulnerable to further near‑term weakness unless it breaks above resistance near S$8.30–S$8.40.

For traders, that translates to “range‑bound with a slight downward bias”; for longer‑term investors, it looks more like a sideways consolidation after a big rerating.

Structural growth drivers heading into 2026

Underneath all the price talk, ST Engineering still has a classic multi‑engine story: defence, aerospace, and smart cities.

Key themes flagged by company disclosures and analysts include: ^[34]

Defence & Public Security (DPS)
- Benefiting from elevated defence spending and demand for systems across Europe, the Middle East and Asia.
- Growing order pipeline for international defence contracts, including land, naval and C5ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) solutions.
Commercial Aerospace (CA)
- Riding the post‑pandemic recovery in global air travel, with strong demand for engine MRO, nacelles and conversion work.
- 11% revenue growth in 9M 2025 points to an ongoing upswing that is still playing out into 2026.
Urban Solutions & Satcom (USS)
- Despite the iDirect drag, the segment has delivered two consecutive quarters of more than S$1 billion in orders, driven by rail projects and healthcare infrastructure, especially in Singapore.
Technology & AI positioning
- Earlier this month, ST Engineering and Singapore Smart Tech were recognised at the All About AI Tech4Good Awards in India, underlining the group’s efforts to weave AI and data analytics into its solutions portfolio – from smart mobility to security and digital infrastructure. ^[35]

On the market‑structure side, the SGX proposal to cut minimum board lots from 100 to 10 shares for higher‑priced stocks has sparked chatter that large‑cap names trading between S$6 and S$10 – such as ST Engineering – could see improved retail participation over time if the reform goes through. ^[36]

Valuation snapshot and key risks

Putting it all together, what are investors really buying at S$8‑plus?

Valuation
- Forward P/E is estimated around the high‑20s, well above ST Engineering’s historical average near 20x, according to Maybank. ^[37]
- Consensus target prices (roughly S$8.70–S$9.00) imply only mid‑single‑digit upside from current levels, suggesting the market already assigns a premium to the company’s visibility and resilience. ^[38]
Dividend profile
- With a guided FY2025 dividend of 23 cents per share, including the proposed special dividend, the stock offers a yield of about 2.8% at today’s prices – not bargain‑basement, but solid in combination with growth. ^[39]
Key risks
- Execution and margin risk on the S$32.6 billion order book, especially in complex defence and infrastructure projects. ^[40]
- Uncertainty around the future of iDirect, including any potential sale or restructuring, and the risk of further write‑downs if the business continues to underperform. ^[41]
- Macro‑driven factors such as currency movements, defence‑spending cycles, and potential delays in aerospace recovery or infrastructure spending.

Bottom line: A quality compounder priced like one

As of 10 December 2025, ST Engineering stock sits at an interesting crossroads:

Operationally, it has strong revenue growth, a record S$32.6 billion order book, and dividend visibility that has just been sweetened by a one‑off special payout. ^[42]
Strategically, it has tidied up its portfolio, accepted a large satellite impairment up front, and signalled it is willing to return capital to shareholders when it monetises non‑core assets. ^[43]
In the market, the stock is no longer cheap by historical standards; analysts mostly like the business but are split between “Buy” for long‑term growth and “Hold/Neutral” on valuation. ^[44]

For investors, that roughly translates to:

Long‑term, quality‑seeking, dividend‑friendly portfolios may see ST Engineering as a core Singapore industrial/defence holding, accepting a premium multiple for stability and visibility.
Value‑oriented or short‑term traders may look for a pullback from current levels or clearer signs that earnings are accelerating faster than the market currently expects.