ST Engineering Q1 2026: SGD 3.3 Billion Revenue and Why I Am Not Selling

I have held ST Engineering (SGX: S63) for several years as part of my income and compounding strategy, and Q1 2026 results give me no reason to reconsider that position.

Group revenue came in at SGD 3.3 billion for the quarter, up 11% year-on-year. The order book stands at SGD 34.5 billion as of March 31, with SGD 8 billion expected to be delivered in the remainder of 2026. That gives the business roughly two and a half years of revenue visibility at current run rates — which is about as much predictability as any Singapore investor can ask for.

The MRO segment is where I pay closest attention. ST Engineering is doubling its maintenance, repair, and overhaul capacity in Singapore between 2025 and 2027 and has secured the designation as the sole Premier MRO Provider in Asia for LEAP engines — the engines that power the Airbus A320neo and Boeing 737 MAX families. As Southeast Asia's aviation fleet continues expanding, this is a long-duration revenue source with real pricing power and limited new competition.

My honest assessment: ST Engineering does not pay the highest dividend yield in my portfolio. The current yield is in the 3-4% range, below the 5-7% I get from my REIT holdings. But the earnings visibility and diversified revenue base — aerospace, urban solutions, defence and public security — make it a different kind of position: lower immediate income, higher compounding potential over time.

I am not adding at current prices. The 11% revenue growth is strong and is already reflected in the share price. I will revisit if the stock pulls back to the SGD 4.20-4.40 range.

The SGD 60,000 annual dividend target remains on track. ST Engineering contributes a modest but consistent portion of that figure each year. 💰