This article first appeared on GuruFocus .
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Revenue Growth:12% increase year-on-year, reaching $11.3 billion for full year 2024.
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EBITDA:11% growth to $1.6 billion, serving as a proxy for operating cash flow.
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EBIT:18% increase to $1.1 billion, surpassing the $1 billion mark.
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Net Profit:20% growth to $702 million.
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Order Book:Record high of $28.5 billion, with $8.8 billion expected to be delivered in 2025.
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Commercial Aerospace Revenue:12% growth to $4.4 billion, with EBIT improving 19% to $400 million.
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Defence & Public Security Revenue:16% increase to $4.9 billion, with EBIT up 15% to $636 million.
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Urban Solutions & Satcom Revenue:1% growth to close to $2 billion, with EBIT improving from $10 million to $40 million.
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Debt Reduction:Borrowings reduced by 5% to $5.8 billion.
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Gross Debt to EBITDA Ratio:Reduced from 4.2 times in 2023 to 3.6 times in 2024.
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Dividend:Total dividend for 2024 proposed at $0.17 per share, up from $0.16 in 2023.
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Release Date: February 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Singapore Technologies Engineering Ltd ( SGGKF ) reported a strong financial performance for the full year 2024, with a 12% increase in revenue, crossing the $11 billion mark.
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The company achieved significant growth in key financial metrics, including an 18% increase in EBIT and a 20% rise in net profit, reaching $702 million.
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The order book reached a record high of $28.5 billion, providing strong visibility for future revenue, with $8.8 billion expected to be delivered in 2025.
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Commercial Aerospace segment saw a 12% revenue growth, driven by strong sales in engine, MRO, nacelles, PTF, and composite panels.
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The company announced a final tax-exempt cash dividend of $0.05 per ordinary share, increasing the total dividend for 2024 to $0.17 per share, reflecting a commitment to returning value to shareholders.
Negative Points
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The growth rate for the Commercial Aerospace segment in the second half of 2024 was not as high as in the first half, due to anticipated challenges in aircraft feedstock for PTF work.
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The Urban Solutions & Satcom segment experienced only a modest 1% revenue growth, with ongoing challenges in the Satcom sub-segment.
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Despite strong financial performance, the company faces ongoing geopolitical tensions and conflicts that could impact future defense-related revenue.
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The company did not provide a detailed breakdown of the $8.8 billion order book delivery expected in 2025 by segment, limiting visibility into segment-specific growth.
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There are concerns about potential tariffs impacting the US-based Commercial Aerospace operations, although the company is monitoring the situation closely.
Q & A Highlights
Q: Regarding the $0.05 dividend increase, should this be considered a new standard for future quarterly payouts? A: (Sy Feng Chong, CEO) As our net profit strengthens, we aim to return more value to shareholders through dividends while reserving capital for growth. We are a yield and growth stock, and as profits improve, we will have more capacity to increase dividends. More details will be shared at the Investor Day on March 18th.
Q: Can you provide a breakdown of the additional $0.9 billion in order book delivery for FY 2025 across segments? A: (Sy Feng Chong, CEO) We do not disclose order book delivery by segment. The $8.8 billion delivery expected in 2025 is higher than the previous year, but we cannot provide a segment breakdown.
Q: What is the margin outlook for Defence & Public Security (DPS) given the year-on-year changes? A: (Ravinder Singh, COO) DPS margins are influenced by project timing and milestones. Comparing 2024 to 2023, margins are quite comparable, and we aim to maintain them with the orders and opportunities we are pursuing.
Q: How does ST Engineering manage potential impacts from US tariffs on its Commercial Aerospace operations? A: (Sy Feng Chong, CEO) We are monitoring the situation closely. Our global network allows us to balance workload and customer locations, and we have supply chain resilience measures in place. It's too early to determine the effects, but we are prepared.
Q: Can you update us on the New York congestion pricing project and its impact on other cities' interest in similar projects? A: (Lee Chew Tan, CCO) We are monitoring the situation. The project is immaterial at the group level, and we have received interest from Europe and Southeast Asia since the project went live. We remain optimistic about the potential of congestion pricing solutions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
