ST Engineering has secured $2.9 billion in new contracts during the second quarter of 2026, with its Commercial Aerospace business accounting for S$1.2 billion of the total as airlines continue to invest in aircraft maintenance, engine services and cabin upgrades.
Singapore Technologies Engineering Ltd (ST Engineering) ended June 2026 with a strong order book of S$35.7 billion, following new contract wins across its Commercial Aerospace, Defence & Public Security, and Urban Solutions & Satcom businesses.
The group secured approximately S$1.2bn in Commercial Aerospace orders during the quarter, spanning its MRO and Aerostructures & Systems (A&S) businesses. The latest wins reflect continued customer demand for aircraft lifecycle services amid rising fleet utilisation and sustained pressure on global MRO capacity.
Strong demand for widebody MRO
ST Engineering’s MRO business secured airframe maintenance and cabin interior upgrade programmes covering Airbus A330 and A350, as well as Boeing 787 widebody aircraft operated by airlines in North America and the Asia-Pacific region. The company also secured CFM56 and LEAP engine service contracts from customers in Asia-Pacific and Europe, along with 787 component services for a European customer.
The combination of airframe, engine and component programmes highlights the breadth of demand across ST Engineering’s commercial aerospace aftermarket portfolio, as airlines seek to maintain aircraft availability while managing increasingly complex maintenance requirements.
Meanwhile, demand remained strong for ST Engineering’s Aerostructures & Systems business, particularly for engine nacelles and composite floor panels. The business continues to benefit from aircraft production schedules maintained by global OEMs.
Defence
ST Engineering’s Defence & Public Security segment secured approximately S$1.2 billion in new contracts during the quarter, covering a range of defence, public security and mission-critical solutions.
Its Land Systems business received repeat orders from international customers for 40mm ammunition and secured a contract to supply several types of assault rifles to a Southeast Asian law enforcement agency. The business also won multi-year MRO and refurbishment contracts for ground support equipment from an aviation-sector customer.
The company’s Defence Aerospace business continued to provide MRO support for international C-130 operators, while its Marine business delivered MRO services to the United States Naval Ship fleet.
ST Engineering’s Digital Systems business also secured contracts covering counter-drone solutions, video intelligence, high-performance GPU infrastructure, and training and simulation systems. Its Cyber business won contracts for cybersecurity services, encryptors and data diodes from customers in Singapore.
Order Book reaches S$35.7bn
The group’s strong quarterly performance was further supported by the recognition of a US$1.3 billion (approximately S$1.7 billion) contract with the New Jersey Turnpike Authority (NJTA) for E-ZPass services.
The contract was awarded to ST Engineering’s TransCore business in September 2024 but was not previously included in the group’s order book because of a legal appeal by the incumbent service provider. Following the customer’s reaffirmation of the award in April 2025 and the commencement of the project in May 2025, the contract has now been recognised in ST Engineering’s order book.
The NJTA contract also includes options for two additional one-year extensions valued at approximately US$0.4 billion (S$0.5 billion). These options have not yet been included in the group’s order book.
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ST Engineering said the contracts secured during the quarter are not expected to have a material impact on the company’s consolidated net tangible assets per share or earnings per share for the current financial year.
For the Commercial Aerospace business, the latest order intake reinforces the strength of the global aftermarket, with continued demand across widebody airframe MRO, cabin upgrades, engine services and components. The breadth of the contracts also reflects airlines’ growing focus on maintaining fleet reliability and extending the operational life of existing aircraft amid constrained new-aircraft and engine availability.
