Singapore Technologies Engineering (ST Engineering) has reported revenue of $2.2 billion for the 3QFY2022 ended Sept 30, 22.2% higher than the revenue of $1.8 billion in the corresponding quarter before.
For the 9MFY2022, ST Engineering’s revenue increased by 19% y-o-y to $6.51 billion as all segments registered revenue growths.
The commercial aerospace segment saw revenue grow by 25% y-o-y to $2.18 billion thanks to the recovery in the aviation sector. While it has yet to fully recover to the levels pre-Covid-19, the segment saw strong nacelle and maintenance, repair and overhaul (MRO) demand, as well as passenger to freighter (PTF) demand during the nine-month period.
For the 3QFY2022, the commercial aerospace segment reported a total of $1.0 billion in new contract wins, and a total of $3.0 billion in new contract wins for the 9MFY2022.
ST Engineering’s urban solutions & satcom revenue surged by 54% y-o-y to $1.21 billion for the 9MFY2022. The growth was mainly attributable to contribution from TransCore following the group’s acquisition in March, as well as higher recognition from its Smart City project milestones.
During the 3QFY2022, the segment recorded new contract wins of $2.0 billion, bringing its contract wins for the 9MFY2022 to $2.7 billion. Despite its wins, the global chip shortages continue to impact the segment.
The group’s defence and public security segment saw revenue increase by 6% y-o-y to $3.12 billion as all of its sub-segments recorded y-o-y improvements.
In the 3QFY2022, the segment’s contract wins stood at $1.8 billion, bringing its contract wins for the 9MFY2022 to $4.5 billion.
In its update, ST Engineering adds that its digital business, comprising cloud, artificial intelligence (AI) analytics and cyber are continuing to see strong momentum, with the group on track to meet its revenue target of $500 million for the FY2026.
As at Sept 30, the group’s order book stood at $25.0 billion. Some $2.5 billion of its order book is expected to be delivered by the 4QFY2022.
The group adds that its new contracts for the 4QFY2022, including some $1.5 billion in toll systems for New Jersey will more than offset the $1.9 billion US Marine order book that was divested.
As at Sept 30, ST Engineering has $6.8 billion in borrowings with 46% of them on floating rate loans.
Shares in ST Engineering closed 2 cents higher or 0.58% up at $3.49 on Nov 25.