ST Engineering Stock (SGX: S63) on Dec 24, 2025: Share Price Drops to S$8.35 as Analysts Track Record Order Book, Dividends and iDirect Reset

Singapore Technologies Engineering Ltd (ST Engineering) shares ended Christmas Eve trading (Dec 24, 2025) as the largest decliner on the Straits Times Index, slipping 1.3% (S$0.11) to S$8.35 in a shorter session ahead of the holiday break. ^[1]

That single-day move doesn’t change the bigger story investors have been trading all year: ST Engineering is no longer “just” a domestic defence-and-engineering stalwart. It’s also a global operator in commercial aerospace maintenance, urban mobility systems and digital solutions—paired with a backlog that analysts repeatedly point to as a visibility anchor.

Below is what matters for the stock as of Dec 24, 2025: the day’s market context, the latest company catalysts, and where forecasts and target prices sit heading into 2026.

ST Engineering share price today: what happened on Dec 24, 2025

On Dec 24, 2025, Singapore shares finished slightly lower as investors headed into the Christmas break. The STI dipped 0.06% to 4,636.34 on a shortened trading day, while ST Engineering fell to S$8.35 and was the index’s biggest loser. ^[2]

With ~3.11 billion shares outstanding, that closing price implies a market value of roughly S$26 billion (back-of-the-envelope math: S$8.35 × 3.11b). ^[3]

Important context for investors: ST Engineering is a core Singapore index component (SGX: S63) and a constituent of major benchmarks including the FTSE Straits Times Index. That index linkage means the stock can sometimes move on fund flows and risk appetite, not only on company-specific headlines. ^[4]

“What is ST Engineering?” The quick business snapshot investors are paying for

ST Engineering is a global technology, defence and engineering group with business exposure across aerospace, smart city/urban solutions, defence and public security, with operations spanning multiple regions and customers in more than 100 countries. ^[5]

For stock watchers, the bull case usually rests on three pillars:

Order visibility (backlog converts into revenue over multiple years)
Dividends (a key part of the equity story for many Singapore investors)
Execution (turning a diverse portfolio into steady margin and cash-flow expansion)

Current news investors are digesting as of Dec 24, 2025

Even on a quiet holiday session, ST Engineering has not been short on recent headlines that shape sentiment and forecasts.

1) Record order book and contract momentum remain the headline fundamental

ST Engineering’s order book stood at S$32.6 billion as at end-September 2025, a level repeatedly described as “record” by both the company and market commentators. ^[6]

In its 9M FY2025 business update, the group said it secured S$14.0 billion in new contracts over the nine months and highlighted that the order book reached S$32.6 billion. ^[7]

Why this matters for the stock: analysts often translate backlog into “revenue visibility,” and one broker note explicitly frames the order book as providing about three years of visibility. ^[8]

2) Dividends: Q3 paid, and FY2025 total dividend flagged at 23 cents (subject to approval)

Dividend-watchers have unusually concrete signposts:

The company’s investor relations page lists a 3Q2025 interim dividend of 4.0 cents per share, with ex-date 21 Nov 2025 and payment date 5 Dec 2025. ^[9]
In November, coverage of the 9M update highlighted a proposed structure that—if approved by shareholders—would bring FY2025 total dividend to 23 cents per share (including the Q3 interim and a special dividend tied to divestment proceeds). ^[10]

The subtle but important nuance: the higher full-year figure depends on approvals and finalisation, so it functions more like a “base-case expectation” than a guaranteed cash flow. ^[11]

3) iDirect impairment and “strategic options”: a reset in satcom expectations

One of the most consequential late-2025 developments is the group’s decision to take a major non-cash impairment on its satellite communications unit:

ST Engineering assessed iDirect’s value in use at S$170 million and impaired S$667 million from a carrying amount of S$837 million (as at Sep 30, 2025). ^[12]
The company cited a tougher operating environment tied to the rapid expansion of non-geostationary satellite orbit (NGSO) systems (including competitive pressure from new constellations), plus slower-than-expected customer adoption of iDirect’s next-gen platform. ^[13]
Crucially, ST Engineering said it is in active discussions on strategic options for iDirect, while noting that no definitive agreement had been reached and there is no certainty a transaction will occur. ^[14]

Investor takeaway: the impairment is the financial system’s way of saying “we are lowering expectations.” Paradoxically, markets sometimes treat a large reset as a clearing event—especially when paired with credible options for reducing future losses.

That tension shows up clearly in analyst commentary: some were optimistic about divestment possibilities, while others were more cautious about long-term economics in satcom. ^[15]

4) Portfolio reshaping continues: STARCO divestment in China

In another portfolio move, ST Engineering announced that its aerospace business agreed to divest its 49% stake in Shanghai Technologies Aerospace Company Limited (STARCO) to China Eastern Airlines:

Cash consideration: RMB680.5 million (about S$124.6 million) paid in two tranches, with the second tranche secured by a bank guarantee. ^[16]
The group expects to use proceeds to pay down debt, estimating annualised interest expense savings of about S$4.2 million. ^[17]
The deal implies an EV/EBITDA multiple of 11.2x (based on STARCO’s FY2024 EBITDA, per the announcement). ^[18]

This is strategically relevant because it aligns with a broader theme in 2025: tightening the portfolio around higher-return or higher-visibility activities, while using proceeds to strengthen the balance sheet.

5) Singapore public transport electrification: LTA awards contracts including ST Engineering

ST Engineering also appeared in a major domestic transport procurement announcement:

Singapore’s Land Transport Authority said it awarded contracts for 660 new electric buses, including contracts to ST Engineering Mobility Services for:

100 single-deck buses (~S$35.7 million) and
150 double-deck buses (~S$79.0 million) ^[19]

For investors, this matters less for immediate earnings (ST Engineering is large) and more for reinforcing a narrative: urban mobility and smart transport are not “side quests”—they are recurring, government-linked revenue streams with long project cycles.

6) Share awards filing: small, but signals ongoing talent retention mechanics

On Dec 18, 2025, ST Engineering disclosed the grant of 11,840 shares under its Restricted Share Plan at a market price of S$8.17 per share, with vesting from 2026 to 2028. ^[20]

This is not a “move the stock” event by itself, but it is part of the governance texture that long-term investors often monitor.

7) Legal overhang risk: US unit named in UPS plane crash lawsuit

A less comfortable headline arrived in mid-December:

A Straits Times report said ST Engineering’s US subsidiary VT San Antonio Aerospace was named among defendants in a wrongful death lawsuit tied to a UPS cargo plane crash. The report said ST Engineering would cooperate with the NTSB and other authorities but would not comment on pending litigation. ^[21]

This is a classic example of a risk that can be hard to model (timelines and outcomes depend on courts and investigations), which is why it can weigh on sentiment even if financial exposure is uncertain.

Forecasts and analyst targets for ST Engineering stock as of Dec 24, 2025

Analyst views are broadly constructive, but not uniform—particularly because 2025 featured both “good” catalysts (backlog, dividends, defence momentum) and “messy” ones (satcom impairment).

Street-wide consensus snapshot

An Investing.com consensus page summarises analyst expectations as:

Average 12-month price target: S$8.772
High estimate: S$10.5; low estimate: S$6.7
Consensus rating: “Buy” (15 analysts: 7 buy, 6 hold, 2 sell) ^[22]

Against the Dec 24 close of S$8.35, that average target implies mid-single-digit upside—helpful, but not “screaming cheap,” which is consistent with how many investors see ST Engineering today: a quality compounder priced like one. ^[23]

What named research notes are saying

RHB maintained a “buy” and S$9.40 target price, highlighting the S$32.6b order book as multi-year visibility and pointing to balance sheet improvement and optionality from restructuring aviation asset management into a fund platform (with AUM potentially rising to US$3.5b by 2029, per the note). ^[24]
A Business Times “Brokers’ Take” piece reported CGS International upgraded the stock to “add” from “hold,” raising target price to S$9.50, while noting ongoing discussions around options for iDirect. The same piece also cited a Morningstar fair value estimate of S$8.10, reflecting a more cautious view on satcom economics. ^[25]
DBS research materials show a more bullish framing after the Q3/9M update, including an upgrade to BUY and a TP of S$9.40 (with the thesis tied to backlog visibility, defence momentum, and a “Satcom reset”). ^[26]

A smart way to interpret this spread: targets cluster in the high S$8s to mid S$9s, while more cautious fair value anchors sit closer to the low S$8s—meaning the market is still debating how much value to assign to (a) defence/international growth and (b) the “clean-up” of weaker assets.

What could move ST Engineering shares next

Upside catalysts investors are watching into 2026

Backlog conversion: Whether the record order book continues to translate into on-time revenue and margin expansion. ^[27]
Portfolio actions: Completion of announced divestments (like STARCO) and any concrete outcome for iDirect strategic options. ^[28]
Dividend follow-through: Formal shareholder approvals and the market’s confidence that dividends remain durable even as the group reinvests for growth. ^[29]
Urban mobility wins: More public transport electrification, tolling, and smart-city deployments (like the LTA bus awards) that expand recurring service and systems revenue. ^[30]

Key risks that can still bite

Litigation/investigation uncertainty related to VT San Antonio Aerospace and the UPS crash lawsuit. ^[31]
Satcom execution risk even after impairment: a write-down doesn’t automatically fix competitive position or profitability; it mainly resets accounting and expectations. ^[32]
Project timing and margins: Large defence and infrastructure contracts can be lumpy; delays and cost pressures can swing quarterly sentiment.
Macro and rates: A higher-for-longer interest rate environment matters because deleveraging and interest expense are part of the medium-term investment narrative. ^[33]

Bottom line for Dec 24, 2025

ST Engineering stock closed Dec 24, 2025 at S$8.35, down on the day as the STI drifted into the Christmas break. ^[34]

But the bigger debate isn’t about one holiday session—it’s about whether the market should value ST Engineering as a high-visibility, dividend-forward compounder with a de-risking portfolio and a record backlog, or apply a persistent discount for the messier parts of the portfolio (notably satcom) and operational/legal uncertainties.

Right now, analyst targets and consensus estimates suggest modest upside from the Dec 24 close, with several houses clustering around the S$9+ range—while more conservative valuations sit closer to where the stock already trades. ^[35]

References

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OCBC Stock (SGX: O39) Update for Dec. 24, 2025: Latest News, Analyst Targets, Dividend Outlook and 2026 Catalysts