Singapore Technologies Engineering (S63) Q4 2024 earnings summary

Executive summary

• Achieved record FY2024 results with 12% revenue growth to $11.28 billion and 20% net profit growth to $702.3 million, driven by strong execution and growth across all business segments.

• Order book reached a record $28.5 billion as of 31 Dec 2024, with $8.8 billion scheduled for delivery in 2025, providing strong revenue visibility.

• All business segments contributed to growth, with Commercial Aerospace, Defence & Public Security, and Urban Solutions & Satcom each delivering higher revenues and EBIT.

• Productivity improvements and cost savings led to the lowest OpEx/revenue ratio in recent years at 10.6%.

• Total dividend for FY2024 is 17.0 cents per share, up from 16.0 cents in FY2023, reflecting improved profitability.

Financial highlights

• FY2024 revenue: $11.28 billion (+12% year-over-year); EBITDA: $1.61 billion (+10.9%); EBIT: $1.08 billion (+18%); net profit: $702.3 million (+20%).

• Operating expenses as a percentage of revenue improved to 10.6%, the lowest in recent years.

• Net cash from operating activities increased to $1.7 billion, with cash and cash equivalents at $602 million at year-end.

• Gross debt reduced to $5.8 billion; gross debt/EBITDA leverage improved from 4.2x to 3.6x.

• EPS for FY2024: 22.53 cents (basic), up from 18.82 cents in FY2023.

Outlook and guidance

• Management expects continued revenue growth, underpinned by a robust order book and competitive market position.

• 2025 order book delivery guidance set at $8.8 billion.

• Ongoing focus on operational efficiency, productivity, and cost management to sustain margin improvements.

• Group weighted average borrowing cost for FY2025 expected to remain at mid 3%.

• Commercial Aerospace growth expected to outpace industry averages in the midterm.