Singapore Technologies Engineering (S63) H1 2024 earnings summary

Executive summary

• Group revenue rose 14% year-on-year to SGD 5.52 billion in 1H 2024, with all segments contributing to growth.

• Net profit increased 20% year-on-year to SGD 337 million, driven by business growth across segments.

• EBIT grew 18% year-on-year to SGD 523 million, with all segments contributing positively.

• Robust order book of SGD 27.9 billion as of June 2024, supporting long-term growth confidence.

• Management remains confident in long-term sustainable growth, supported by opportunities in aerospace, smart city, defense, and public security.

Financial highlights

• EBITDA increased 11% year-on-year to SGD 786 million.

• Interim dividend of SGD 0.04 per share approved, payable 5 September 2024.

• Weighted average borrowing cost for 2024 estimated at 3.7%.

• Debt to trailing 12-month EBITDA improved from 4.2x to 4.0x.

• Earnings per share was 10.80 cents, up from 9.01 cents in 1H2023.

Outlook and guidance

• Full-year USS segment performance expected to surpass 2023, with 2H weighted results.

• Management expects continued growth, supported by a strong order book and opportunities in key industry domains.

• No material impact anticipated from the pause in New York Congestion Pricing for Urban Solutions & Satcom.

• Cost management and productivity initiatives to continue mitigating inflationary pressures.