While the spotlight often falls on banks and tech stocks, one of Singapore’s most consistent performers has quietly delivered strong long-term returns.
Over the last 10 years, ST Engineering (SGX: S63) has delivered a total return of nearly 233% with dividends reinvested.
That means a S$10,200 investment would be worth nearly S$34,000 today. The stock hit a record high of over S$8 per share on 6 June 2025.
A Decade of Steady Compounding
Back in June 2015, ST Engineering traded at around S$3.40. Today, that same share is worth over S$8. That alone is a 135% gain in share price.
But that is only part of the story. Over the last 10 years, ST Engineering paid out $1.54 per share in dividends. If you bought 3,000 shares in June 2015, you would have collected $4,800 in dividends along the way.
With dividends reinvested, your total return would have reached 232.9%. That is a 12.8% annual return. All from a company many investors tend to overlook.
Strong Business, Quiet Execution
ST Engineering may not make the headlines often. But its business has continued to grow steadily in the background.
Its three core segments are:
- Commercial Aerospace (39% of revenue): Generated S$4.38 billion in 2024. Growth came from engine MRO, freighter conversions and composite components
- Defence and Public Security (44% of revenue): Delivered S$4.94 billion in revenue, supported by cyber, land systems and defence aerospace
- Urban Solutions and Satcom (17% of revenue): Contributed S$1.96 billion, with earnings improvement driven by Urban Solutions and early signs of Satcom recovery
For the full year 2024, ST Engineering reported 12% revenue growth to S$11.28 billion.
Earnings before interest and tax (EBIT) reached S$1.08 billion, up 18%. Profit before tax (PBT) rose 23% to S$863 million, while net profit increased 20% to S$702 million.
Order Book Visibility
ST Engineering’s order book stood at S$28.5 billion as at end December 2024.
Of this, S$8.8 billion is expected to be delivered in 2025. That gives investors visibility into future earnings. It is a rare advantage in today’s uncertain environment.
The Turnaround and Recovery
The company faced challenges in the past. News reports of a governance probe emerged in 2014. Its share price fell to around S$2.70 in early 2016.
Since then, new leadership under CEO Vincent Chong, along with a stronger business focus, have helped restore investor confidence.
Today’s share price reflects that steady recovery.
The Long-Term Lesson
ST Engineering shows that strong fundamentals and steady growth can still deliver impressive returns.
Its performance was not driven by hype. It was driven by contracts, execution and cash flow. And it rewarded shareholders who held on over time.
You do not always need a high-flying stock to grow your wealth. Sometimes, staying invested in a dependable business is enough.
Get Smart: What to Watch Next
ST Engineering will release its next earnings on 13 August 2025. With a record order book, growing revenue streams and improving debt levels, the company is well positioned for the next stage of growth.
For long-term investors, ST Engineering is a reminder that solid companies can quietly deliver over time. You just need to give them time to work.
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Disclosure: Joanna Sng of The Smart Investor owns shares of ST Engineering.
