Singapore Technologies Engineering Ltd · SGX:S63
Singapore Technologies Engineering — Singapore Tech Eng — 1H2025 Earnings Presentation
40 slides from Singapore Technologies Engineering's earnings presentation, Aug 14, 2025
Slide 1: First-Half 2025 Results
First-Half 2025 Results 14 August 2025
Slide 2: Disclaimer
Disclaimer The forward-looking statements in this presentation reflect the Company’s current intentions, plans, expectations, assumptions, and beliefs about future events as at the date of this presentation. Actual future performance, outcomes and results may differ materially from those expressed i
Slide 3: Agenda
➢1H2025 Financial Highlights Agenda • Group Highlights • Business Discussions − Commercial Aerospace (CA) − Defence & Public Security (DPS) − Urban Solutions (URS) & Satcom (USS) • Contract Wins and Order Book • Debt Management • Portfolio Management • Dividends • Outlook • Segment Highlights ➢Quest
Slide 4: Group Highlights
ST Engineering Group Highlights
Slide 5: 1H2025 Strong Profit Growth Ahead of Revenue Growth Y-o-Y
Group Highlights 1H2025 Strong Profit Growth Ahead of Revenue Growth Y-o-Y ($’m) Revenue EBIT PBT Net Profit 5,916 602 500 403 +7% +15% +20% +20% y-o-y y-o-y y-o-y y-o-y 5 |
Slide 6: Group 1H2025 Revenue Breakdown
Group Highlights Group 1H2025 Revenue Breakdown 1H2025 Revenue by segment 1H2025 Revenue by type 1H2025 Revenue $5.9b $5.9b by location of customers Commercial Defence $’b 4.1 Asia U.S. 3.9 54% 20% CA, $2.3b DPS, $2.6b 40% 45% 1.8 Europe Others 1.6 20% 6% USS, $0.9b 16% 1H2024 1H2025 1H2024 1H2025 6
Slide 7: 1H2025 Revenue
Group Highlights 1H2025 Revenue ❑ Growth in all segments +7% $’m 276 2 5,916 +17 -15 117 +284 +8% -8 5,520 +151 -35 5,973 -57 1H2024 CA DPS USS 1H2025 7 | Note: FX (USD) translation impact of $57m, due to lower USD/SGD average rate in 1H2025 vs 1H2024 FX (USD) Impact
Slide 8: 1H2025 EBIT
Group Highlights 1H2025 EBIT ❑ Strong EBIT growth from higher revenue, better margin mix and cost savings +15% $’m 602 79 523 1H2024 Business growth & cost savings 1H2025 8 |
Slide 9: 1H2025 Net Profit
Group Highlights 1H2025 Net Profit ❑ Strong net profit growth due to higher EBIT and lower finance costs +20% $’m 403 4 62 337 1H2024 Business growth Finance costs, net 1H2025 & cost savings 9 | Note: All figures are stated net of tax
Slide 10: Current Assessment on Impact of Tariffs
Impact of Tariffs Current Assessment on Impact of Tariffs Immaterial financial impact; monitoring evolving situation Impact 1st Order • Limited direct impact • Engine MRO China: deferred revenue of $34m over 2.5 Supplier Impact months in 2Q2025; lower than previously expected 2nd Order • No plan to
Slide 11: Business Discussions
ST Engineering Business Discussions
Slide 12: CA – Steady Revenue and Strong EBIT Growth
Business Discussions CA – Steady Revenue and Strong EBIT Growth • Revenue: +5% y-o-y growth due to stronger Engine MRO and Nacelles, partially offset by lower PTF revenue • EBIT: +18% y-o-y growth due to higher revenue, better margin mix and cost savings Revenue ($’m) EBIT ($’m) +5% +18% Revenue 117
Slide 13: Strong DPS Revenue and EBIT Growth
Business Discussions Strong DPS Revenue and EBIT Growth • Revenue: +12% y-o-y growth contributed by all sub-segments • EBIT: +13% y-o-y growth driven by higher revenue and cost savings Revenue ($’m) EBIT ($’m) +12% +13% 2,648 367 2,372 324 1H2024 1H2025 1H2024 1H2025 13 |
Slide 14: USS – Revenue and EBIT
Business Discussions USS – Revenue and EBIT • Revenue: Flat growth, with higher revenue from URS offset by lower Satcom revenue • EBIT: +32% y-o-y growth due to better margin mix and cost savings Revenue ($’m) EBIT ($’m) Flat 918 Revenue growth 22 921 +32% 12 +2%r1 R1 +17 -15 FX 9 impact 936 Revenue
Slide 15: Satcom: Transformation Journey Continues
Business Discussions Satcom: Transformation Journey Continues • Vertically integrated non-GEO satellite operators continue to disrupt the market • INTUITION general release on track for end Sep 2025 to deliver features such as standards, cloud, multi-orbit and virtualisation ➢ INTUITION gaining trac
Slide 16: Order Book
ST Engineering Order Book
Slide 17: Strong Contract Wins and Order Book
Contract Wins and Order Book Strong Contract Wins and Order Book Contract Wins Order Book $9.1b $31.2b for 1H2025 as at 30 Jun 2025 (1Q2025: $4.4b; 2Q2025: $4.7b) Defence & $4.2b Public Security $5.0b Commercial Expected to be delivered Aerospace $2.8b for rest of the year Urban Solutions & Satcom $
Slide 18: $4.7b New Contracts for 2Q2025
Contract Wins and Order Book $4.7b New Contracts for 2Q2025 2Q2025 Highlights • CFM56-5B/7B MRO offload agreement with a major engine OEM • Five-year LEAP-1A engine MRO agreement with Air Cairo Commercial $1.5b • CFM56-7B heavy maintenance agreements with North Asian airlines Aerospace • Boeing 737N
Slide 19: Debt Management
ST Engineering Debt Management
Slide 20: Debt Management
Debt Management Total Borrowings Debt Management -7% $’b • Borrowings progressively reduced from $6.5b as at 6.5 -5% 31 Dec 22 to $5.5b as at 30 Jun 25 6.1 -5% 5.2x 5.8 • 1H2025 EBITDA increased 11% y-o-y to $871m 5.5 ~$450m • Gross Debt/LTM EBITDA ratio has been reducing y-o-y Divestment since 2022
Slide 21: Portfolio Management
ST Engineering Portfolio Management
Slide 22: Continual Portfolio Rationalisation: LeeBoy and SPTel
Portfolio Management Continual Portfolio Rationalisation: LeeBoy and SPTel Net Cash Proceeds*: Repay borrowings or reinvest ~$450m • Group annual interest expense savings of ~$15m EV/EBITDA multiples One-off Divestment Gain*: • LeeBoy: 9.3x ~$180m • SPTel: 21.4x Per annum Proforma 2024 Financials •
Slide 23: Dividends
ST Engineering Dividends
Slide 24: Consistent Returns to Shareholders
Dividends Consistent Returns to Shareholders 1Q2025 interim dividend: 4.0 cents Payment date: 3 Jun 2025 2Q2025 Interim Dividend 2Q2025 interim dividend: 4.0 cents Payment date: 5 Sept 2025 4.0 cents per ordinary share Total dividend for 1H2025 will be 8.0 cents 24 |
Slide 25: Outlook
ST Engineering Outlook
Slide 26: Group President & CEO’s Message
Outlook Group President & CEO’s Message “ We delivered a robust set of results in first-half 2025. In executing our growth strategy, we continue to be agile in navigating the evolving global landscape. Our recent divestments are in line with our portfolio rationalisation strategy to exit non-core bu
Slide 27: Segment Highlights
ST Engineering Segment Highlights
Slide 28: Group Revenue
Segment Highlights Group Revenue $'m 1H2025 1H2024 Change Commercial Aerospace 2,347 2,231 ▲ 5% Defence & Public Security 2,648 2,372 ▲ 12% Urban Solutions & Satcom 921 918 ▲ 0.3% Group 5,916 5,520 ▲ 7% 28 |
Slide 29: Group EBIT
Segment Highlights Group EBIT $'m 1H2025 1H2024 Change Commercial Aerospace 223 190 ▲ 18% Defence & Public Security 367 324 ▲ 13% Urban Solutions & Satcom 12 9 ▲ 32% Group 602 523 ▲ 15% 29 |
Slide 30: Commercial Aerospace
ST Engineering Commercial Aerospace
Slide 31: Commercial Aerospace Sub-segment Highlights
Segment Highlights Commercial Aerospace Sub-segment Highlights Aerospace MRO Aerostructures & Systems Aviation Asset Management Revenue, $’m Revenue, $’m AUMR1, USD$’m +22%* -14%* +2% 1,402 1,140 2,297 2,348 1,148 977 1H2024 1H2025 1H2024 1H2025 1H2024 1H2025 *Adjusted for FX (USD) translation *Adju
Slide 32: Defence & Public Security
ST Engineering Defence & Public Security
Slide 33: Defence & Public Security Sub-segment Highlights
Segment Highlights Defence & Public Security Sub-segment Highlights Defence Aerospace Digital Systems Land Systems Marine & Cyber Revenue, $’m Revenue, $’m Revenue, $’m Revenue, $’m +14% +9% 1,113 887 980 810 +12% +7% 417 373 258 276 1H2024 1H2025 1H2024 1H2025 1H2024 1H2025 1H2024 1H2025 33 | Note:
Slide 34: Urban Solutions & Satcom
ST Engineering Urban Solutions & Satcom
Slide 35: Urban Solutions & Satcom Sub-segment Highlights
Segment Highlights Urban Solutions & Satcom Sub-segment Highlights Urban Solutions Satcom Revenue, $’m Revenue, $’m +3%* 805 829 -12%* 132 117 1H2024 1H2025 1H2024 1H2025 *Adjusted for FX (USD) translation impact, improvement in *Adjusted for FX (USD) translation impact, reduction in 35 | revenue wo
Slide 36: Appendix
ST Engineering Appendix
Slide 37: Income Statement
Appendix Income Statement $'m 1H2025 1H2024 Revenue 5,916 5,520 Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) 871 786 Earnings Before Interest and Tax 602 523 Finance Costs, Net (102) (106) Profit Before Taxation 500 416 Profit attributable to Shareholders (Net Profit) 403 33
Slide 38: Balance Sheet
Appendix Balance Sheet $’m 30 Jun 2025 31 Dec 2024 Property, plant and equipment 2,144 2,115 Right-of-use assets 707 605 Intangible assets 4,514 4,990 Other non-current assets 1,167 1,188 Current assets* 7,380 7,324 Total assets 15,912 16,221 Current liabilities* 7,486 8,239 Non-current liabilities
Slide 39: Statement of Cash Flows
Appendix Statement of Cash Flows $'m 1H2025 1H2024 Net cash from/(used in) Operating activities 761 809 Investing activities (245) (196) Financing activities (545) (537) Net change in CCE, including cash classified within (30) 76 assets held for sale Less: Cash classified within assets held for sale
Slide 40: Connect with us
Connect with us Icon Icon Icon Description automatically generated Description automatically generated Description automatically generated Icon Description automatically generated www.stengg.com 40 |