ST Engineering 1Q26 - UOB Kay Hian 2026-05-19: Strong Start To The Year; Record Orderbook & Robust Contract Pipeline Underpin Medium-term Growth

• Record-high orderbook of S$34.5b and robust contract win momentum across all segments underpin ST Engineering’s medium-term growth outlook. Net profit was guided to have grown faster at a rate in excess of 15%.

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Strong growth across all segments; earnings growth outpaced revenue in 1Q26.

• ST Engineering (SGX:S63) reported 1Q26 revenue of S$3.26b (+11% y-o-y), in line with our expectation. Adjusting for LeeBoy’s divestment in Sep 25, revenue growth would have been stronger at 15% y-o-y. Management highlighted that net profit growth outpaced rebased revenue growth, implying earnings growth north of 15% y-o-y, supported by margin expansion.

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Defence & Public Security (DPS)

• Defence & Public Security (DPS) revenue rose 7% y-o-y, or 13% y-o-y excluding LeeBoy, driven by growth across all sub-segments. Management highlighted particularly strong momentum in international defence contracts, with 1Q26 international defence wins already approaching twice 2025’s full-year level.

Commercial Aerospace (CA)

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Roy Chen CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2026-05-19

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