Singapore, Jan 31, 2026, 15:02 SGT — Market closed
Singapore Technologies Engineering (ST Engineering) shares ended Friday at S$9.80, rising 1.55%, continuing a solid streak that’s brought the stock back into the spotlight for the coming week. The defence and aerospace firm’s strong order flow, combined with several broker upgrades, has helped it stand out amid a weaker overall market. (Yahoo Finance)
Why this matters now: investors are betting on companies poised to gain from boosted defence spending and aircraft maintenance contracts, and ST Engineering fits that bill. The stock has already surged early in 2026, so the upcoming earnings report must prove that the new contracts are translating into profits—not just hype.
This is also a timing play. Funds funneled into “defence” can exit quickly if guidance falls short or contract wins taper off. The Singapore market has been volatile amid shifting global risk sentiment.
ST Engineering announced earlier this week that its total contract awards for 2025 reached a record S$18.7 billion, a 49% jump from 2024. This surge was driven by around S$4.7 billion in new contracts secured during the fourth quarter. The company also noted these contracts are unlikely to significantly affect net tangible assets or earnings per share for the current financial year. (The Business Times)
Broker notes gave the stock a lift. On Jan. 29, Shekhar Jaiswal, an analyst at RHB Bank Singapore, bumped up his target price for ST Engineering to S$10.70 from S$9.40. He noted the stock still offered “value,” trading below its global defence peers despite a strong start to the year. (The Edge Singapore)
Singapore’s Straits Times Index dropped 0.5% on Friday, dragged down by overnight losses on Wall Street that spilled over into Asian markets. Local heavyweights felt the pressure as the broader market struggled to gain traction. (The Business Times)
Traders are now eyeing if buying momentum holds during any pullbacks and if more brokers push their targets upward. Here, the “order book” means the backlog of contracted work waiting to be fulfilled — important for revenue visibility, though it doesn’t guarantee margins.
There’s a catch, though. Contract wins often take a while to turn into actual deliveries, and the type of work involved can shift profitability. Aerospace maintenance and defence projects don’t follow a steady path, with milestone timing sometimes skewing a single quarter’s results.
ST Engineering is set to release its full-year FY2025 results on Feb. 27 before the Singapore market opens. An analyst and media briefing will follow that same morning. (Sgx)
