Singapore, January 29, 2026, 14:56 SGT — Regular session.
- Shares of ST Engineering climbed 1.37% to S$9.61 in afternoon trading.
- The company reported record contract awards of S$18.7 billion for 2025, marking a 49% jump from 2024.
- RHB bumped its target price up to S$10.70, with eyes now on the FY2025 results due February 27.
Shares of Singapore Technologies Engineering Ltd (STEG.SI) ticked up Thursday, climbing 1.37% to S$9.61 following a broker’s target price increase and fresh contract news from the company. The stock fluctuated between S$9.45 and S$9.65 during the session.
Contract awards offer a fast snapshot of demand for ST Engineering’s blend of defence projects and aircraft maintenance, sectors that tend to be more stable than the wider cycle. The update arrives with the stock hovering close to recent peaks, leaving limited margin for any disappointments.
ST Engineering’s share price has fluctuated between S$4.77 and S$9.69 in the past 52 weeks, according to the latest exchange figures. This range is significant as recent order momentum has been a key driver behind its current valuation.
The company reported Wednesday that total contract awards for 2025 reached a record S$18.7 billion, a 49% jump from S$12.6 billion in 2024. This surge was driven by roughly S$4.7 billion in new contracts secured in the fourth quarter. The latest wins included S$1.7 billion in commercial aerospace, S$2.5 billion in defence and public security, and S$0.5 billion in urban solutions and satcom. Highlights featured a five-year nacelle maintenance, repair and overhaul (MRO) contract for LOT Polish Airlines’ Boeing 787 fleet and orders tied to Singapore’s next-generation infantry fighting vehicles. The group noted these contracts aren’t expected to materially affect net tangible assets per share or earnings per share in the current financial year.
RHB Bank stuck with its “buy” rating and bumped up the target price to S$10.70 from S$9.40, according to The Business Times citing an analyst note. Analyst Shekhar Jaiswal pointed to record 2025 contract wins as a key driver behind the positive outlook. He also highlighted what he described as a more supportive environment for procurement and defence budgets. Additionally, Jaiswal expects recurring earnings in the second half to gain momentum, boosted by improved aerospace margins, the report said. The Business Times
Traders are now focused on how fast the order pipeline will translate into stronger revenue and margins, particularly in aerospace maintenance, where labor shortages and parts availability remain challenges. Defence contracts add another layer of uncertainty, with timing heavily dependent on government budgets and delivery timetables.
Contract wins don’t translate directly into cash, and some deals may be delayed, scaled back, or shifted to future years. If commercial aerospace margins don’t improve as anticipated, or defence and public security projects face timing setbacks, the stock’s recent surge could backfire with a sharper pullback.
ST Engineering announced it will report its full-year 2025 earnings on Feb. 27, before the Singapore market opens. An analyst and media briefing is set for 11:00 a.m. Singapore time that day.
