We’re a month away from the second half of 2026, and the last five months have been a wild ride.
The Middle East conflict, a potential change in interest rates, and a possible economic slowdown have dominated the news cycle and unsettled markets.
Despite this volatility, several Singapore businesses have done pretty well, with profits and cash flows holding up.
Heading into the second half of the year, this resilience could warrant a larger premium from investors seeking stability.
What “Resilience” Means in 2026
A truly resilient business is one that, despite a volatile global backdrop, can still generate solid profits.
That’s not all.
Having a robust balance sheet, being able to generate positive cash flows, and sustaining its dividends are all desirable traits.
At the end of the day, having long-term durability is the ultimate scorecard for a business’s resilience.
Resilience is even more important during periods of uncertainty, like the one we’re going through; owning solid businesses also helps to lower your odds of permanent capital loss (which can really hurt your long-term investment plan).
Oversea-Chinese Banking Corporation Limited (SGX: O39), or OCBC — The Earnings Stability Leader
Banks are often tied to the health of the local and global economy.
Hence, you would think that a bank would be the last to report an increase in profits given the falling interest rates.
Nevertheless, OCBC turned in a surprisingly strong report card for its latest quarter ending 31 March 2026 (1Q2026) with net profit rising 5% year on year (YoY) to nearly S$2 billion.
Despite the turbulent operating environment, net margins were stable at around 50+%.
In fact, the bank also reported a new high in revenue, aided by a +20% YoY growth in non-interest income.
OCBC hasn’t officially declared its upcoming interim dividend yet, but its latest numbers set the stage for a possible good payout this August.
Holding the line on margins while steadily churning out increasing profits is exactly the stability we want in a business.
VICOM Limited (SGX: WJP), or VICOM — The Cash Flow Compounder
Next, we have a company that has a strong track record of producing consistent free cash flow across multiple economic cycles: VICOM.
In the first quarter ending 31 March 2026 (1Q2026), VICOM did not disappoint, generating more than S$2 million in free cash flow.
This vehicle inspection and technical testing company also maintains a solid balance sheet with a cash position of S$59.9 million to support business growth.
There was no disclosure if the group took on new debt during the quarter, but in the previous earnings, VICOM did not have any debt on its balance sheet.
The key takeaway is that a strong balance sheet provides additional durability for a company during uncertain times.
ST Engineering Limited (SGX: S63), or STE — The Structural Growth Resilience
The last company on the list is seeing higher demand amid increased global defence spending in part due to the Middle East conflict.
Indeed, STE displayed no sign of slowdown, posting a double-digit growth in group topline for the quarter ending 31 March 2026 (1Q2026).
Other than global defence, STE is also enjoying decent growth in both its commercial aerospace and urban solutions & Satcom businesses.
In fact, the group announced new contract wins amounting to S$4.8 billion for 1Q2026.
These new contract wins result in an order book of S$34.5 billion, with S$8 billion expected to be realised over 2026, resulting in decent earnings visibility for the group.
The key takeaway here is that structural growth (increase in global defence spending) can provide support to a business’s resilience even during softer markets.
What These Stocks Have in Common
Taking stock across all three companies, we find some commonalities: strong management execution, durable business models and strong financial positions.
As we move into the second half of the year, the outlook for interest rates will remain a key metric to monitor.
Additionally, trends in business and consumer demand matter to see if we get a pullback in spending.
With nobody able to accurately predict what is about to unfold, it’s even more crucial to be disciplined in your stock selection.
Get Smart: Resilience Is Often Revealed During Difficult Markets
In conclusion, weaker markets provide key insights into the resilience of a business.
During such times, you’ll be well-rewarded to reassess the durability of the companies you own.
Focusing on high-quality businesses is one of the best ways to navigate market volatility and compound your wealth consistently over time.
If you want to retire with a constant stream of dividends, these 5 stocks might be all you need. We’ve found 5 SG stocks that have kept paying (and growing) through inflation, rate hikes, and recessions. See what they are with our latest free report for SGX dividend investors. Click here to get instant access.
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Disclosure: Wilson H. does not own shares of any companies mentioned.
