ST Engineering (SGX: S63) Stock: 9M 2025 Results, Dividend Upgrade and Space Contract Fuel Long‑Term Growth Story

Singapore Technologies Engineering Ltd – better known as ST Engineering – has quietly turned into one of the most interesting stocks on the Singapore Exchange. Its businesses now stretch from aircraft maintenance to metro systems, cyber‑security, quantum‑safe networking and, as of late November, building a high‑end radar satellite for the UAE.

As of 2 December 2025, ST Engineering’s share price is trading around S$8.21–S$8.24, after a powerful multi‑year run that has seen strong earnings growth, record order wins and a steadily rising dividend. ^[1]

Here’s a deep dive into the latest news, forecasts and analysis around ST Engineering stock, and what they may mean for investors watching SGX: S63.

ST Engineering share price and valuation as of 2 December 2025

According to SGinvestors, ST Engineering (SGX: S63) is quoted at S$8.210 as of 11:59am Singapore time on 2 December 2025, down 0.36% on the day. ^[2]
StockInvest and other data providers show the last close on 1 December 2025 at S$8.24. ^[3]

From various performance trackers, the chart over the last few years looks roughly like this: ^[4]

2021: +13.9% share price gain
2022: +4.4%
2023: +3.9%
2024: +21.3%
2025 year‑to‑date: about +90%, driven by record revenues, a beefed‑up dividend policy and strong contract wins

So ST Engineering today trades more like a premium growth compounder than a sleepy industrial.

On valuation, analyst aggregation site StocksGuide (which tracks 17–19 covering analysts) gives roughly the following snapshot: ^[5]

Current price (reference on their page): S$8.24
TTM P/E: ~33x
2025E EPS: ~S$0.29
Implied 2025E P/E at S$8.21–8.24: about 28–29x
EV/Sales (2025E): ~2.5x
Price‑to‑Sales (2025E): ~2.1x

On the income side, based on the company’s latest guidance (more on that below), ST Engineering expects to pay S$0.23 per share in total dividends for FY2025 (including a one‑off special dividend). At a S$8.21 share price, that’s a trailing yield of about 2.8%, of which S$0.18 is the “base” dividend (roughly 2.2% yield) and S$0.05 is special. ^[6]

This is not a bargain‑basement valuation. The market is clearly pricing ST Engineering as a quality, high‑visibility growth and dividend name, not as a distressed industrial.

9M 2025 results: revenue growth and record order book despite Satcom pain

On 12 November 2025, ST Engineering released its 9M 2025 business update. A few big numbers jumped out: ^[7]

9M 2025 revenue: S$9.1 billion, up 9% year‑on‑year
3Q 2025 revenue: S$3.1 billion, up 13% year‑on‑year
Growth by segment in 3Q 2025
- Commercial Aerospace (CA): +22% revenue
- Defence & Public Security (DPS): +5%
- Urban Solutions & Satcom (USS): +15%

The group also racked up S$14.0 billion of new contracts in 9M 2025, including S$4.9 billion in 3Q alone, bringing the order book to a record S$32.6 billion as at 30 September 2025. About S$2.8 billion of that is expected to be delivered in the remainder of 2025, giving solid revenue visibility into 2026. ^[8]

To put that in context, 2024 full‑year revenue is around S$11.3 billion by analyst estimates, so the current order book covers roughly 2.8–3.0 years of revenue at that scale. ^[9]

The Satcom reset: big impairment, strong underlying operations

The glowing top‑line hides a nasty one‑off: a S$689 million non‑cash impairment, mainly on the group’s satellite communications business: ^[10]

iDirect Group impairment: about S$667 million
JetTalk (Satcom‑related) impairment: about S$22 million

This was partially offset by S$258 million in divestment gains (from disposals like LeeBoy, SPTel and CityCab – more below), but the net impact is still around –S$431 million on the P&L. ^[11]

The Business Times summarised it neatly: revenue up 9% to S$9.1 billion for 9M 2025, “on the back of strong performances across all its three business segments, despite an impairment of S$667 million” at the Satcom unit. ^[12]

In other words:

The core operations (aerospace, defence, urban solutions) are growing nicely.
The Satcom writedown acts as a one‑time reset of a troubled part of the portfolio.
Cash flow, order book and underlying profitability look much healthier than the bottom line suggests.

This Satcom hit is also part of a broader portfolio clean‑up that ST Engineering has been telegraphing for a while.

Portfolio reshaping: divestments, new MRO capacity and a cleaner balance sheet

The big impairment in Satcom didn’t happen in isolation. ST Engineering has been busy reshaping its portfolio and balance sheet.

Divestments: LeeBoy, SPTel, CityCab and Shanghai JV

From company presentations, particularly the 1H 2025 results and 3Q 2025 market update, ST Engineering has executed several divestments: ^[13]

LeeBoy (road construction equipment)
SPTel (telecoms JV with SP Group)
CityCab (taxi business)
Divestment of equity interests in Shanghai Technologies Aerospace Company (STAECO’s Shanghai airframe MRO JV)

Key points from the disclosures: ^[14]

Total cash proceeds from the major divestments (LeeBoy, SPTel, CityCab) are about S$594 million.
They generate divestment gains of around S$258 million, used to partly offset the Satcom impairments. ^[15]
The divestments help lower net debt, reduce interest expense (estimated annual interest savings were flagged in their slides) and free capital for higher‑return areas. ^[16]
The Shanghai airframe MRO JV divestment is expected to produce a one‑off gain of S$48.1 million, while ST Engineering focuses its China MRO footprint on Guangzhou and the new Ezhou facility. ^[17]

New Ezhou airframe MRO facility with SF Airlines

On 11 August 2025, ST Engineering’s Commercial Aerospace arm and SF Airlines officially opened a new greenfield airframe MRO facility in Ezhou, Hubei, China, via their joint venture ST Engineering Aerospace (HuBei) Aviation Services. ^[18]

Highlights:

Located at Ezhou Huahu International Airport, China’s first dedicated cargo airport.
Designed to provide line and heavy maintenance for both cargo and passenger aircraft.
Initial plan: two hangars able to handle up to four widebody or eight narrowbody aircraft simultaneously, with scope to add more hangars as demand grows. ^[19]
Close partnership with SF Airlines, China’s largest freighter airline, but also targeting third‑party customers in the region. ^[20]

This Ezhou hub, plus existing facilities in Guangzhou and Xiamen, cements ST Engineering’s position as a major MRO player in China just as regional air traffic and cargo volumes continue to recover. ^[21]

Stronger balance sheet and high‑grade credit

The capital recycling and focus on cash‑generative businesses are showing up in the balance sheet. By 1H 2025, ST Engineering highlighted: ^[22]

Gross debt: trending down (around S$5.5 billion mid‑2025).
Gross debt / LTM EBITDA: improved to about 3.2x from over 5x a few years ago.
Credit ratings: Aaa (Moody’s) and AA+ (S&P) – extremely rare for a listed industrial / defence conglomerate.

In effect, ST Engineering is trying to behave like a quasi‑sovereign infrastructure champion: high recurring cash flows, strong balance sheet, patient capital allocation.

New growth vectors: quantum‑safe cybersecurity for banks and beyond

2025 has also been the year ST Engineering leaned hard into some very sci‑fi‑sounding real‑world tech.

Quantum‑safe solutions for financial institutions

At Singapore FinTech Festival 2025, ST Engineering announced that it was “ramping up quantum‑safe solutions for financial institutions”, spotlighting a quantum‑safe encryptor and a new post‑quantum cryptography (PQC) readiness platform. ^[23]

The company and third‑party reports describe the suite roughly as:

A Quantum‑Safe Encryptor (QSE) capable of high‑speed real‑time encryption (up to 100 Gbps), combining post‑quantum algorithms with readiness for Quantum Key Distribution (QKD). ^[24]
A PQC readiness / cryptographic inventory platform that lets banks map their cryptographic landscape, assess quantum risk and plan staged migration paths to quantum‑safe standards. ^[25]
Integration with existing secure networking and cyber‑operations offerings (for example, ST Engineering’s Agentic‑AI‑powered Security Operations Centre tools). ^[26]

ST Engineering is not starting from zero here. Earlier efforts include: ^[27]

A partnership via SPTel (a JV with SP Group) launching Quantum‑Safe Services over the National Quantum‑Safe Network Plus, offering QKD‑as‑a‑service to enterprises.
A Memorandum of Understanding with Toshiba and SpeQtral in 2024 to accelerate quantum‑secure communications solutions in Southeast Asia.

For investors, all of this is about optionality. Quantum‑safe infrastructure might not yet move the revenue needle in 2025, but if quantum security becomes a de‑facto standard for financial and critical infrastructure networks, ST Engineering is positioning itself to be one of the go‑to vendors.

Into space: UAE SAR satellite contract as a new frontier

The biggest “new” headline for the stock in late November 2025 didn’t come from planes, trains or data centres – it came from space.

On 24 November 2025, ST Engineering announced that it had been selected to support the UAE’s space ambitions with a cutting‑edge synthetic aperture radar (SAR) satellite for the Sirb National SAR Constellation Programme, via FADA under the UAE’s EDGE Group. ^[28]

From the company and satellite‑industry coverage:

ST Engineering will design and deliver a high‑resolution SAR satellite, offering sub‑metre imaging and high‑speed downlink. ^[29]
It will also build the mission control infrastructure for flexible, real‑time satellite monitoring and tasking, so the constellation can deliver day‑and‑night, all‑weather imagery. ^[30]
The satellite is part of the UAE’s Sirb programme, intended to strengthen Earth‑observation capabilities for disaster response, environmental monitoring, security and commercial applications. ^[31]

This contract:

Deepens ST Engineering’s space systems portfolio alongside its existing Satcom and remote‑sensing capabilities.
Fits naturally with its defence, ISR (intelligence, surveillance and reconnaissance) and secure‑communications offerings.
Adds another high‑tech, IP‑rich revenue stream that could support margins once the impairments are behind it.

It’s also exactly the kind of contract that analysts like to see in a “national champion + technology” story: big ticket, strategic, and sticky once you’re inside the programme.

Offshore & rail: niche projects that still matter to the story

Two other project families help fill out the growth narrative.

Landmark walk‑to‑work (W2W) offshore vessel contract

On 13 January 2025, ST Engineering announced a “Landmark Contract for an Advanced Walk‑to‑Work Vessel”. ^[32]

Key details:

Contract to design and build a 97‑metre W2W vessel for a leading (but unnamed) oil & gas company.
Purpose‑built for safe transfer of personnel and cargo to offshore installations, with a motion‑compensated gangway and active‑heave‑compensated crane. ^[33]
Delivery expected in 1H 2027.

This order marks ST Engineering’s expansion into the market for specialised offshore support vessels, adding a niche but potentially high‑margin line of business to its Marine/Sea segment.

Bangkok MRT’s Orange Line and global rail footprint

A little earlier, in December 2024, ST Engineering’s Urban Solutions business announced about S$180 million of contracts to bring its “advanced metro technologies” to Bangkok’s 35.9km MRT Orange Line. ^[34]

Scope of work:

Communications systems for trains and stations
SCADA (Supervisory Control and Data Acquisition) system for real‑time monitoring and control
Over 500 sets of full‑height and 160+ half‑height platform screen doors across 28 stations

The projects build on a long relationship with Bangkok’s MRT:

ST Engineering has delivered 23 smart metro projects in Bangkok since 2014, and its solutions now cover around 85% of the city’s MRT networks.
Globally, it has worked on over 200 rail projects in more than 50 cities. ^[35]

For investors, these rail wins are not as headline‑grabbing as a satellite contract, but they are exactly the kind of recurring, infrastructure‑style revenue that underpins the massive order book and visibility.

Dividend story: 2025 special dividend and a new progressive policy from 2026

One big reason income‑oriented investors now pay attention to ST Engineering: the dividend narrative has become much more interesting.

2025 dividend: higher payout plus a special

At its 2025 Investor Day, ST Engineering indicated that it planned to raise its total dividend to S$0.18 per share for FY2025, up from S$0.17 in FY2024, citing robust retained earnings and a strong five‑year outlook. ^[36]

Through 2025, the board has declared: ^[37]

1Q 2025 dividend: S$0.04 per share (paid in May 2025)
2Q 2025 dividend: S$0.04 per share
3Q 2025 dividend: S$0.04 per share (ex‑dividend on 21 November 2025, payable 5 December 2025)
Proposed final dividend: S$0.06 per share
Proposed special dividend: S$0.05 per share, funded largely by divestment gains

Add those up and you get a total FY2025 payout of S$0.23 per share, subject to shareholder approval at the 2026 AGM. ^[38]

At today’s S$8.21 share price, that’s about a 2.8% yield for FY2025, although the S$0.05 special dividend is one‑off. The underlying “base” dividend of S$0.18 implies a more sustainable yield of ~2.2%, with room to grow if profits rise.

Recent articles on dividend stocks have repeatedly highlighted ST Engineering as a blue‑chip name rewarding shareholders in December 2025, noting both the interim payout and the upcoming special dividend. ^[39]

New progressive dividend policy from FY2026

Starting from FY2026, ST Engineering has adopted a new “incremental dividend” policy: ^[40]

As the company’s full‑year net profit increases, it intends to pay out roughly one‑third of the year‑on‑year increase in net profit as incremental dividends.
Dividends will be paid quarterly.

This isn’t a fixed payout ratio, but a progressive overlay on top of the ordinary dividend. The message is simple: if profits grow, dividends should mechanically step up too.

The Smart Investor and other local commentators note that since 2020, ST Engineering has grown: ^[41]

Earnings per share at about 9% compound annual growth
Operating profit at around 13–14% CAGR

Combine that track record with the new policy and you get a credible long‑term dividend growth story, even if the starting yield is moderate.

Mid‑term strategy and 5‑year financial targets

The 2025 Investor Day presentations and subsequent AGM slides set out fairly bold five‑year targets for 2025–2029 (base year 2024): ^[42]

Group revenue to grow to around S$17 billion by 2029, implying a high single‑digit revenue CAGR, more than 2.5x global GDP growth.
Group net profit CAGR to exceed revenue CAGR by up to 5 percentage points (i.e. low‑ to mid‑teens earnings growth).
Dividend per share to increase in tandem with profit, under the new policy.
Commercial Aerospace revenue to grow at roughly 2x the aerospace industry growth rate, leveraging global MRO and OEM positions.

DBS Group Research called these targets “pleasantly surprising”, noting that they are well above ST Engineering’s already respectable 7.7% net profit CAGR between FY20–24 and flagging defence & public security as a key margin driver. ^[43]

If achieved, these targets help justify the current premium valuation – but they also set a bar that management now has to clear.

What analysts are saying: price targets and forecasts

Different analyst platforms broadly agree on the direction (growth), but differ on how much upside is left from here.

Consensus ratings and price targets

StocksGuide (which aggregates 19 analysts) shows: ^[44]

Average target price: S$9.18
Current reference price: S$8.24
Implied upside: about 11–12%
Ratings mix:
- 8 Buy
- 9 Hold
- 2 Sell

SGinvestors compiles a slightly different but overlapping set of broker targets and arrives at an average target of S$9.20, roughly 12.1% upside from S$8.21. Recent individual broker calls include: ^[45]

CGSI: ADD, TP S$8.40
DBS: HOLD, TP S$8.20
Maybank: HOLD, TP S$8.40
OCBC: BUY, TP S$9.80
Phillip: NEUTRAL, TP S$8.20
RHB: BUY, TP S$9.40
UOB Kay Hian: HOLD, TP S$7.37

TipRanks (where available) categorises the stock as a “Moderate Buy”, with a cluster of target prices around S$9.1–S$9.2. ^[46]

So the consensus view looks like:

“Good company, strong growth, fairly full valuation, but still mid‑single‑digit to low‑teens upside if things go to plan.”

Revenue, margin and EPS forecasts

From the StocksGuide analyst consensus: ^[47]

2024 revenue (estimate): ~S$11.3b, +11.6% YoY
2025 revenue (estimate): ~S$12.4b, +10.1% YoY
2026 revenue (estimate): ~S$13.4b, +8.0% YoY

Margins and profits:

EBITDA 2025E: ~S$1.8b, about 10% higher than the last twelve months.
EBITDA margin 2025E: ~14.4%, up sharply from ~9.3% in 2024 as impairments fall away and higher‑margin segments grow.
Net profit 2025E: ~S$891m, about 27% above 2024.
Net margin 2025E: ~7.2%, up from ~6.2% in 2024.
EPS 2025E: ~S$0.29, up ~16% from 2024’s ~S$0.22.

Valuation metrics from the same dataset:

2025E P/E: ~29x
Current P/E: ~33x (based on trailing EPS)
2025E EV/Sales: ~2.49x

These forecasts assume:

Order book conversion continues smoothly.
No repeat of large Satcom impairments.
Defence, aerospace and smart‑city spending remain robust globally.

If ST Engineering hits somewhere near these numbers, its EPS growth would justify a mid‑20s P/E, but today’s high‑20s to low‑30s multiple still leaves limited room for disappointment.

Key risks investors should keep in mind

No matter how shiny the satellites and quantum encryptors, ST Engineering is not a risk‑free story. A few obvious pressure points:

Execution risk on a very large order book
A S$32.6b order book is great – if projects are delivered on time, on budget and with acceptable margins. Complex defence, rail and infrastructure projects are prone to delays, cost overruns and contract disputes. ^[48]
Defence and geopolitical risk
Defence and public security revenues depend on government budgets and strategic priorities. While global defence spending has been trending up, shifts in regional politics, export controls or contract renewals could still bite.
Satcom and space market uncertainty
The 2025 Satcom impairments were a clear sign that not every tech bet will pay off. Future space and Satcom projects – including the UAE SAR satellite – carry technology, schedule and customer‑concentration risk. ^[49]
Macro and interest‑rate environment
Even with strong credit ratings, higher rates and weaker global growth could pressure valuations, financing costs and infrastructure budgets.
Valuation risk
At nearly 30x forward earnings, ST Engineering is priced for continued high‑single‑digit revenue growth and double‑digit profit growth. If growth slows, or margins disappoint, the share price could derate even if the business remains fundamentally sound. ^[50]

Bottom line: how the ST Engineering stock story looks on 2 December 2025

Putting it all together, here’s the state of the ST Engineering thesis right now:

Positives

Strong operational momentum: 9M 2025 revenue up 9%, with double‑digit growth in Commercial Aerospace and Urban Solutions & Satcom. ^[51]
Record order book: S$32.6b of contracts, with S$14b won in 9M 2025 alone, and multi‑year visibility across defence, aerospace and rail. ^[52]
Cleaner portfolio and balance sheet: Heavy Satcom impairments and non‑core divestments taken now, leaving a more focused, cash‑generative core backed by Aaa / AA+ credit. ^[53]
New growth vectors: Quantum‑safe cyber solutions and the UAE SAR satellite contract move ST Engineering deeper into high‑end, IP‑rich tech markets. ^[54]
Dividend upgrade and progressive policy: 2025 total dividend of S$0.23 including a special, plus a 2026‑onwards policy that directly links dividend growth to profit growth. ^[55]

Challenges

The stock has rerated sharply, with 2025E P/E near 28–29x and limited margin of safety if execution or growth stumble. ^[56]
Satcom has reminded everyone that even well‑capitalised tech bets can go wrong.
A lot of the long‑term upside (quantum‑safe security, space, smart‑city platforms) is still more narrative than hard cash flow, at least for now.

For investors scanning SGX for “steady compounders with a tech edge”, ST Engineering currently looks like a high‑quality but not cheap candidate:

Part defence prime, part global MRO house, part smart‑city infrastructure provider, part emerging cyber/space tech player.
Backed by a record order book, strong credit, and a more ambitious dividend policy than it had a few years ago.

Whether that justifies paying nearly 30x forward earnings is ultimately a question of time horizon and risk tolerance, not of maths alone. On a multi‑year view, though, ST Engineering has quietly turned into one of the more fascinating intersections of hardware, infrastructure and advanced tech in the Asia‑Pacific markets – and that’s exactly the kind of weirdly modern mix markets tend to reward over long cycles.