S63.SI Stock Today, March 3: Record Backlog, Defence Wins Guide 2026
ST Engineering share price is on watch today as investors weigh a record S$33.2b defence order book and improving earnings visibility for 2026. We track S63.SI with the latest quote at S$10.25, up 2.8%, near a 52-week high of S$10.44. Management plans to repeat a doubling of international defence wins in FY2026, while around S$9.9b of deliveries in 2026 may lift revenue. FY2025 core profit rose 21%, offsetting a S$689m satcom impairment. The declared ST Engineering dividend of S$0.23 for FY2025 and a new progressive policy from 2026 are near-term supports for sentiment around the ST Engineering share price.
Market snapshot and technicals
The ST Engineering share price trades at S$10.25, up 2.8% day on day, with a range of S$9.95 to S$10.40 and volume of 12.7m versus a 4.8m average. It sits above the 50-day average at S$9.43 and the 200-day at S$8.55. RSI is 61.5 and ADX is 37.8, suggesting a firm trend. Bollinger upper band is S$10.42, near today’s high.
The On-Balance Volume is rising, while MFI at 50.8 shows neutral flows. Keltner upper band at S$10.48 and Bollinger upper at S$10.42 frame resistance. Supports are near S$10.00 and the 50-day at S$9.43. If the ST Engineering share price holds above S$10.00, momentum traders may target S$10.40 to S$10.44 in the near term.
Backlog, defence wins and 2026 delivery pipeline
A record S$33.2b defence order book underpins earnings visibility into 2026, with about S$9.9b scheduled for delivery in 2026. FY2025 core profit rose 21%, even as satcom impairment weighed headline numbers. Management highlighted backlog conversion as a key driver that can support the ST Engineering share price through 2026. Coverage: Business Times.
Management expects to repeat the doubling of international defence contract wins in FY2026, after strong success last year. More overseas programmes would diversify revenue and improve scale for Defence & Public Security. This helps offset commercial cyclicality and supports the ST Engineering share price on positive news flow. Coverage: Yahoo Finance.
Dividend outlook and cash health
The declared ST Engineering dividend for FY2025 is S$0.23 per share, and a progressive policy starts in 2026. Trailing yield is roughly 1.7% at S$10.25, with a payout ratio near 0.69. Regular distributions, plus a thicker backlog, can steady the ST Engineering share price for income-focused SG investors seeking stability and modest growth.
Operating cash flow per share is S$0.53 and free cash flow per share is S$0.36. Interest coverage stands at 5.24 times, while the current ratio is 0.99. Debt to equity is 2.03, so deleveraging and working capital discipline remain priorities. Clear cash conversion from the defence order book will be key to sustaining the ST Engineering dividend trajectory.
Valuation, risks and what to watch
At S$10.25, trailing PE is 40.8 and PB is 11.5, implying a premium to historical norms. A model-based B+ stock grade suggests upside, yet a separate C+ company rating flags caution. With EPS growth of 21% and rising margins, upside exists, but valuation leaves less room for error in the ST Engineering share price.
The S$689m satcom impairment is a reminder of execution risk. Intangibles are high and tangible book is negative. Watch the 2026 delivery schedule, new international defence wins, margin trends and cash conversion. Next earnings date is 19 Aug 2026. Positive backlog conversion and dividend clarity could remain catalysts for the ST Engineering share price.
Final Thoughts
ST Engineering’s record S$33.2b order book, plans to repeat doubled overseas defence wins, and S$9.9b of 2026 deliveries create strong visibility. The FY2025 core profit gain of 21% and a progressive dividend policy from 2026 add support. Still, the S$689m satcom impairment, premium valuation and leverage mean investors should track cash conversion, margin mix and working capital closely. Tactically, watch S$10.00 support, the 50-day at S$9.43 and RSI near 70 for potential overbought signals. For long-term positions, focus on defence programme milestones, backlog conversion rates and updates to the ST Engineering dividend framework, as these factors can shape the ST Engineering share price through 2026.
FAQs
Why is the ST Engineering share price near its 52-week high?
A record S$33.2b order book, solid core profit growth of 21% in FY2025, and management’s plan to repeat doubled international defence wins in FY2026 lifted sentiment. Around S$9.9b of 2026 deliveries improve revenue visibility, while a declared S$0.23 FY2025 dividend and a progressive policy from 2026 support confidence.
What is the impact of the S$689m satcom impairment on outlook?
The satcom impairment hit reported profit, but core profit still rose 21%, showing resilience. The key is whether satcom operations stabilise and cash flows improve. Investors should watch margin trends, backlog conversion and any asset restructuring updates to gauge if the issue remains contained or requires further action.
How attractive is the current ST Engineering dividend?
The FY2025 payout of S$0.23 implies a trailing yield of about 1.7% at S$10.25. From 2026, a progressive policy aims to grow distributions over time. Sustainability rests on cash conversion from the defence order book, disciplined capex and leverage control, which we will track alongside earnings updates.
Is the stock’s valuation a concern for new buyers?
Valuation is rich at roughly 41 times trailing earnings and 11.5 times book. That can limit upside if execution wobbles. New buyers may prefer staggered entries, using support near S$10.00 and the 50-day average at S$9.43, while watching 2026 delivery milestones, defence wins and cash generation for confirmation.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
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