ST Engineering Expected to Secure More Defense Contracts This Year -- Market Talk

Dow Jones
03/03

0219 GMT - Singapore Technologies Engineering could win more defense contracts this year, says Morningstar's Lorraine Tan in a note. The company expects to double its new international defense contract wins to over S$1.2 billion in 2026, she notes. The director reckons the number of average defense segment contract wins could grow 13% over 2026-2030. The defense engineering group's commercial airspace segment margin is also likely to expand on operating leverage and cost containment, she adds. She raise her earnings forecast by an average 26% over 2027-2034, citing ST Engineering's higher orderbook and margin improvement. Morningstar also raises its fair-value estimate by 26% to S$10.80. Shares rise 6.5% to S$10.92. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

March 02, 2026 21:19 ET (02:19 GMT)

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