Singapore Technologies Engineering (ST Engineering) reported earnings of $305.9 million for the second half of fiscal year 2023, ending in December, marking a robust 19.9% year-on-year increase driven by strong business growth, enhanced productivity, and cost-saving measures.
Revenue for the same period saw a significant uptick of 10% year-on-year, reaching $5.2 billion, primarily fueled by the expansion of its commercial aerospace division. Meanwhile, the cost of sales during the second half of fiscal year 2023 rose by 8.4% to $4.25 billion. However, gross profit surged by 16.8% year-on-year to $992.34 million, with earnings before interest and taxes (EBIT) experiencing a notable 34% increase to $470 million.
For the entire fiscal year 2023, ST Engineering reported earnings of $586.5 million, reflecting a solid 9.6% year-on-year rise. Revenue for the full year also registered a notable increase of 12% year-on-year, reaching $10.1 billion. During this period, the cost of sales expanded by 10.8% to $8.13 billion, while gross profit grew by 16.1% to $1.97 billion. EBIT improved by 24% year-on-year to $915 million.
In the fourth quarter of fiscal year 2023, ST Engineering secured new contracts valued at approximately $3.1 billion, bringing the total new contract value for the year to $14.8 billion, up from $13.1 billion in 2022. The company concluded 2023 with an order book of $27.4 billion, anticipating revenue delivery of about $7.9 billion from this order book in 2024.
The board proposed a final dividend of 4 cents per ordinary share, resulting in a total dividend for fiscal year 2023 of 16 cents per ordinary share, inclusive of three quarterly interim dividends of 4 cents each.
Vincent Chong, group president and CEO of ST Engineering, attributed the company’s strong performance in fiscal year 2023 to the robust performance of its commercial aerospace, defense, and public security segments, as well as a well-structured portfolio.
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