Singapore, Jan 27, 2026, 15:08 SGT — Regular session
- ST Engineering shares dipped about 0.2% to S$9.38, though they remain up around 12% since late December
- The company secured a contract from Singapore’s defence ministry to supply next-gen infantry fighting vehicles, with deliveries scheduled to begin in 2028
- Traders are eyeing contract values and the upcoming results update set for February
Shares of Singapore Technologies Engineering Ltd (ST Engineering) slipped roughly 0.2% to S$9.38 on Tuesday, trimming some of their recent rally following news of a fresh defence contract in Singapore. (Investing)
The order is significant since it involves long-cycle work that can secure revenue visibility for years, despite fluctuations in other business areas tied to the economy. This comes as Singapore equities hit new highs, with the Straits Times Index climbing past 4,900 in early trading, fueled by bets the U.S. Federal Reserve will keep rates unchanged this week. (The Business Times)
Still, the immediate impact on earnings remains unclear. ST Engineering didn’t disclose a valuation for the deal, and deliveries won’t start until 2028. Investors are left to decide if this contract alters the earnings trajectory or just prolongs it.
ST Engineering announced Monday that its Land Systems division secured a Ministry of Defence (MINDEF) contract last December to develop and supply the next-generation infantry fighting vehicles (IFVs). These armored troop carriers will be built on the Terrex s5 platform. The company plans to collaborate with MINDEF and the Defence Science and Technology Agency to integrate enhanced capabilities. “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. (ST Engineering)
Shares ended Monday 0.4% higher at S$9.40, ahead of the contract announcement, The Business Times reported. The company has yet to reveal the deal’s value. (The Business Times)
The stock surged sharply heading into 2026. ST Engineering reported securing $14.0 billion in new contracts during the first nine months of 2025, pushing its order book to $32.6 billion by the end of September.
Defence programmes often run long and timelines shift. A deal kicking off in 2028 offers some clarity, but it delays cash flow and margin concerns. Investors will be keen to understand how the build and integration phases will impact profits.
All eyes shift to the upcoming earnings and guidance updates. The company usually releases its full-year results in February, a key period that often shapes forecasts for contract activity and dividend payouts. (ST Engineering)
Traders are eyeing more than just the company; the Fed’s policy decision set for Jan. 28 is shaping risk appetite across Asian markets this week. (Federalreserve)
