ST Engineering - DBS Research 2025-05-28: Growth Anchored, But Upside Capped

• Although ST Engineering does not disclose any measure of earnings in its quarterly updates, we note that a positive revenue mix (higher contribution from the Defence & Public Security (DPS) division with 12%-13% operating profit margins) suggests that the group’s earnings during the period were likely better than expected, barring any material adverse developments from other segments.
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1QFY25 revenue met expectations despite mixed performance across segments.

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• The Urban Solutions and Satcom (USS) division grew by 4.0% y-o-y, as drag from the satcom business (owing to delays in new order wins, which impacts near-term revenue as satcom’s conversion cycle is shorter) offset decent growth from the urban solutions business.
• The Defence & Public Security (DPS) segment was the sole outperformer, with revenue surging 17.7% y-o-y, bolstered by robust growth across all domains in local and international markets.

Solid contract wins amounting to S$4.4bn in 1QFY25

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Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-11-13 ST Engineering - Growth To Accelerate As Satcom Reset Nears End.

Previous report by DBS:
2025-08-15 ST Engineering - Solid 1H25, But Fails To Clear A High Bar.

Price targets by 3 other brokers at ST Engineering Target Prices.

Listing of research reports at ST Engineering Analyst Reports.

Relevant links:
ST Engineering Share Price History,
ST Engineering Announcements,
ST Engineering Dividend Payout Dates & Corporate Actions,
ST Engineering News