What were the key takeaways from ST Engineering earnings on Feb 28?

Headline profit fell 34% due to a S$689 million satcom impairment, while core earnings improved in H2 on strength in defence and commercial aerospace. The order book hit a record S$33.2 billion with S$18.7 billion in wins. Management also flagged a progressive dividend policy from FY2026, shifting focus to execution and cash flow.

Is the ST Engineering dividend attractive right now?

TTM dividends are about S$0.17 per share, or a 1.7% yield at S$10.02. Management outlined a progressive dividend policy from FY2026, but near-term cash needs include capex and restructuring. Dividend growth depends on delivery execution, working capital, and satcom recovery, so income investors should watch cash flow trends closely.

How strong is the ST Engineering order book?

The order book stands at S$33.2 billion, supported by S$18.7 billion in new FY2025 wins. The mix includes long-cycle defence programs and commercial aerospace work such as MRO and passenger-to-freighter conversions. This provides multi-year revenue visibility, though timing depends on parts supply, labour, and certification milestones.

Is S63.SI overvalued after the results?

At 41.5 times TTM earnings and 11.5 times book, valuation is demanding and assumes robust growth. Technicals are constructive, but the premium multiple requires clean execution, stronger cash generation, and evidence of satcom stabilisation. Investors may prefer staggered entries, watching S$10.42 resistance and S$9.65 support for confirmation.

Global Market Insights

S63.SI Stock Today: S$689m Impairment, Record S$33.2b Backlog on February 28

ByDanny Kontos February 28, 2026February 28, 2026

ST Engineering earnings dominated Singapore markets on 28 Feb after the group booked a S$689 million satcom impairment alongside a record S$33.2 billion order book. Shares of S63.SI last traded at S$10.02, flat on the day after opening at S$10.26. Despite a 34% drop in headline profit, core performance improved in the second half, led by defence and commercial aerospace. Local investors are weighing execution on the delivery pipeline, the satcom recovery, and a new progressive dividend policy targeted from FY2026.