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Welcome to this week’s edition of top stock market highlights.
Singapore Technologies Engineering, or STE, reported a robust set of earnings for the first half of 2025 (1H 2025).
Revenue rose 7.2% year on year to S$5.9 billion, while operating profit increased by 15.2% year on year to S$602.2 million.
Net profit climbed nearly 20% year on year to S$402.8 million.
STE also churned out a positive free cash flow of S$484.6 million for 1H 2025, though this was 7.3% lower than the previous year’s S$523 million.
The engineering giant saw healthy year-on-year revenue increases for its Commercial Aerospace (CA) and Defence & Public Security (DPS) segments.
Revenue for CA grew 5% year on year to S$2.35 billion while operating profit shot up 18% year on year to S$223 million, contributed by higher sales from engine MRO (maintenance, repair and overhaul) and nacelles.
DPS saw revenue rise 12% year on year to S$2.65 billion, with growth coming from all sub-segments.
STE snagged a total of S$9.1 billion in contract wins for 1H 2025, with DPS getting the bulk (S$4.2 billion) of these orders.
The blue-chip group’s order book as of 30 June 2025 stood at a multi-year high of S$31.2 billion, with S$5 billion expected to be delivered for the remainder of this year.
An interim dividend of S$0.04 was declared for the second quarter of 2025 (2Q 2025), taking the total dividend for 1H 2025 to S$0.08, unchanged from a year ago.
STE is engaging in continual portfolio rationalisation by divesting non-core assets such as LeeBoy and SPTel.
The group will receive net cash proceeds of around S$450 million and book a gain on disposal of approximately S$180 million.
ComfortDelGro Corporation, or CDG, also released an encouraging set of earnings for 1H 2025.
Revenue climbed 14.4% year on year to S$2.4 billion, aided by contributions from the acquisitions of A2B and Addison Lee.
Operating profit improved by 22.8% year on year to S$172.5 million because of effective cost control in Singapore, coupled with UK London Public Transport contracts renewed at improved margins.
Net profit increased by 11.2% year on year to S$106 million, and the increase would have been higher if you exclude a S$6.1 million dividend income received from A2B in the previous year.
Capital expenditure for 1H 2025 was elevated, however, because of the purchase of 452 funded buses for the Metroline Manchester contract and another 174 electric vehicle (EV) buses in London.
CDG upped its interim dividend by 11.1% year on year to S$0.0391, in line with the good results.
