Singapore, Jan 27, 2026, 15:08 SGT — Regular session
- ST Engineering shares slipped roughly 0.2% to S$9.38, but have still climbed about 12% since late December
- The company landed a contract from Singapore’s defence ministry to provide next-gen infantry fighting vehicles, with deliveries set to start in 2028
- Traders are focused on contract values ahead of the results update scheduled for February
Shares of Singapore Technologies Engineering Ltd (ST Engineering) edged down about 0.2% to S$9.38 on Tuesday, pulling back slightly after a recent surge fueled by news of a new defence contract in Singapore. 1
The order stands out because it covers long-cycle projects, offering revenue visibility for years even as other business segments face economic ups and downs. Meanwhile, Singapore stocks surged, with the Straits Times Index pushing beyond 4,900 in early trades. Investors are banking on the U.S. Federal Reserve holding interest rates steady this week. 2
The immediate effect on earnings is still uncertain. ST Engineering hasn’t revealed a valuation for the deal, and deliveries aren’t expected until 2028. Investors must weigh whether this contract shifts the earnings path or simply extends it.
ST Engineering said Monday its Land Systems division won a Ministry of Defence (MINDEF) contract last December to develop and deliver next-generation infantry fighting vehicles (IFVs). These armored carriers will use the Terrex s5 platform. The firm aims to work closely with MINDEF and the Defence Science and Technology Agency to integrate advanced features. “MINDEF’s selection of the Terrex s5 as its next generation IFV reaffirms our ability in designing and building advanced armoured mobility platforms,” said Land Systems president Lim Kok Ann. 3
Shares closed Monday up 0.4% at S$9.40, just before the contract announcement, according to The Business Times. The company hasn’t disclosed the deal’s value yet. 4
The stock climbed steeply as 2026 approached. ST Engineering announced $14.0 billion in new contracts won over the first nine months of 2025, lifting its order backlog to $32.6 billion by September’s close.
Defence programmes frequently face delays and changing schedules. While a contract starting in 2028 brings some clarity, it pushes back cash flow and raises margin worries. Investors want to see how the build and integration stages will affect earnings.
Attention now turns to the upcoming earnings and guidance updates. Full-year results typically come out in February, a crucial moment that often influences forecasts around contract wins and dividend plans. 5
Traders aren’t just focused on the company—Jan. 28’s Fed policy decision is already shifting risk appetite throughout Asian markets this week. 6
