Singapore, Feb 4, 2026, 15:20 (SGT) — Regular session
- ST Engineering shares climbed roughly 0.4% in afternoon trading, hitting S$10.00 earlier.
- A new engine MRO deal with Xiamen Airlines and the launch of a Singapore service centre headline the airshow news
- At the Singapore Airshow, the focus on drones and autonomy has investors eager for upcoming orders and regulatory green lights
Shares of Singapore Technologies Engineering Ltd (STEG.SI) edged up 0.4% to S$9.99 by 3:20 p.m. in Singapore on Wednesday, hitting a high of S$10.00 earlier. The Straits Times Index gained roughly 0.2%. 1
The timing is crucial. The Singapore Airshow is attracting major aerospace and defence players as airlines grapple with supply-chain bottlenecks that have postponed aircraft deliveries. Regional carriers, meanwhile, are mapping out expansion plans. Airbus and Boeing headline the event, joined by defence-oriented drone companies like Anduril Industries and Shield AI. 2
For ST Engineering, routine maintenance suddenly grabs attention as a short-term focus, while newer ventures—drones and high-speed coastal transport—represent longer-term bets. Traders generally favor the predictability of multi-year maintenance deals. In contrast, pricing the newer products is trickier, and progress feels slower.
On Wednesday, the company announced a multi-year deal with Xiamen Airlines for engine maintenance, repair, and overhaul, focusing on the airline’s first Performance Restoration Shop Visit (PRSV) for CFM LEAP-1A engines. Tang Jianqi, Xiamen Airlines’ deputy general manager for engineering and maintenance, highlighted that ST Engineering secured the contract through a “highly competitive bidding” process. ST Engineering’s Tay Eng Guan noted the deal extends a 35-year partnership. 3
MRO—maintenance, repair, and overhaul—covers the heavy-duty tasks that keep planes and engines airborne. A PRSV is a thorough engine shop visit designed to bring performance back, usually triggered when fuel efficiency and thrust begin to slip during on-wing operation.
On Monday, ST Engineering announced the opening of a combined airframe and engine nacelle MRO centre in Singapore, integrating these services into its current airframe facilities. Jeffrey Lam, president of Commercial Aerospace at ST Engineering, described the move as providing customers with a “one-stop experience” while cutting turnaround times. 4
The standout from the airshow is the unmanned DrN-600, unveiled by ST Engineering. This all-electric eVTOL cargo drone targets medium-lift tasks, carrying up to 100 kg over distances exceeding 70 km. The company aims for certification by 2028. Lam told Reuters that drones represent “a new market” and “a disruptor,” yet he warned, “It’s still unregulated.” 5
ST Engineering AirX is also rolling out a water-skimming craft designed for short sea routes. According to Channel NewsAsia, the company and regional operator BatamFast plan to lease an AirFish Voyager for a Singapore–Batam route. Operations could begin in the second half of 2026, pending regulatory approval. BatamFast general manager Chua Choon Leng noted, “Our focus is on the route and then the risk assessment.” 6
ST Engineering Group’s Chief Technology Officer Lee Shiang Long revealed the company plans to collaborate with Shield AI on deploying its Hivemind solution — a suite of AI tools aimed at boosting drone autonomy, allowing the aircraft to operate with less direct human oversight. 7
The downside is clear. Certification timelines might delay, regulators could impose stricter rules, and initial “partnership” announcements don’t always translate into steady revenue. In MRO, too, tight capacity combined with competitive bidding and parts shortages can pressure margins.
Investors are eyeing the remainder of the Singapore Airshow, running until Feb. 8, for fresh orders, new customer partnerships, and firmer timelines on approvals and certifications for the group’s latest platforms. 8
