ST Engineering had a solid 1Q26, with revenue up 15% (rebased), and 17% in constant currency. STE guided that profit growth outpaced rebased revenue growth. Its record S$34.5bn orderbook (with S$8bn in deliverables in the rest of 2026) supports strong revenue visibility.
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Commercial Aerospace (CA: S$1.3bn revenue, +15% y-o-y) delivered its best-ever 1Q, driven by engine MRO and nacelle deliveries.
The sequential dip from 4Q25 reflects seasonality. STE confirmed no MRO deferrals by customers to date despite the Middle East conflict.
International defence wins in 1Q26 alone nearly doubled the total chalked in FY25, anchored by the EUR315m Qatar land MRO contract and the S$600m Kuwait missile gun boats sub-contract.
It unveiled a specific, active international defence opportunities pipeline worth US$11bn over the next 18-24 months, spanning land, naval, munitions, cyber, and unmanned systems across the Middle East, Europe, and Asia-Pacific. This is on top of the already announced order win.
Domestic defence demand remains healthy, and international vs domestic margins are largely comparable.
Urban Solutions & Satcom (USS: S$525m revenue, +18% y-o-y) marked its strongest 1Q on record.
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Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
Shekhar Jaiswal 
