Singapore Technologies Engineering (ST Engineering) saw its stock price plummet by 3.46% in early trading on Thursday, despite announcing positive half-year results and a dividend payout. The sharp decline suggests that the company's performance may have fallen short of market expectations, despite showing growth.

Singapore Technologies Engineering has reported earnings of $402.8 million for its 1HFY2025, up 19.7% y-o-y. Revenue in the same half year ended June was up 7.2% to $5.92 billion, as all three of its business segments contributed to the growth. Revenue would have been up 8% if not for a weaker US dollar.

Its commercial aerospace segment, driven by higher engine maintenance and overhual orders, reported revenue of $2.35 billion, up 5% y-o-y. Thanks to a better margin mix, ebit was up 18% y-o-y to $223 million.

Defence and public security generated revenue of $2.65 billion, up 12% y-o-y; Ebit was up 13% y-o-y to $367 million.

Revenue for urban solutions & satcom was flat y-o-y at $921 million but ebit was up 33.3% to $12 million thanks to better margin mix and cost savings.

In 1HFY2025, the company won $9.1 billion in new orders, bringing its total order book to $31.2 billion as at June 30.

The company plans to pay an interim dividend of 4 cents per share for its 2QFY2025.

Vincent Chong, president and group CEO, calls the 1HFY2025 numbers a "robust" set of results.

"In executing our growth strategy, we continue to be agile in navigating the evolving global landscape," he says.

Referring to a few recent divestments, such as that of US construction machinery unit Leeboy and SPTel, a fibreoptic JV, Chong says these deals are in line with the company's portfolio rationalisation strategy to exit non-core business and recycle capital.

"We remain steadfast in strengthening our core businesses. Our strong order book continues to provide revenue visibility for the group," he adds.

ST Engineering shares closed on Aug 13 at $8.96, a new record close. It is up more than 90% year to date.