SINGAPORE – ST Engineering's stock has experienced a thrilling surge following the company's announcement of plans to boost its dividend payouts for its shareholders in 2025! As investor enthusiasm grew, the company's shares jumped 3.3%, reaching an impressive peak of $6.53 shortly after the market opened on March 18. Although the stock closed slightly lower at $6.38, the excitement around future dividends was palpable.

In a bold move, ST Engineering intends to increase its total dividend to 18 cents per share for the fiscal year 2025, up from 17 cents in the previous year. This decision is backed by robust retained earnings and a optimistic five-year outlook. In an impressive display of financial strength, ST Engineering reported record revenues of $11.28 billion and earnings of $702 million for 2024.

The planned dividend for 2025 consists of an interim dividend of 4 cents per share for the first three quarters, culminating in a final dividend of 6 cents per share. This marks a significant commitment to shareholders who are likely to celebrate this news.

But that's not all! The company unveiled a new dividend policy effective from FY2026 onwards. This policy aims to reward shareholders with approximately one-third of the year-on-year increase in net profit as incremental dividends, signaling a solid commitment to returning value to investors as the company grows.

Chief Executive Officer Vincent Chong emphasized the company's strategy of maintaining a healthy balance between distributing profits to shareholders and retaining funds for future investments. He reiterated the objective to enhance total shareholder returns while strategically reinvesting for growth.

Further electricity came from the March 18 investors' event where Chief Financial Officer Cedric Foo revealed that ST Engineering had already met several ambitious targets set for 2026, including exceeding $11 billion in revenue, with over $3.5 billion coming from its commercial aerospace division.

Looking ahead, ST Engineering has set even loftier goals with targets to achieve total revenues of $17 billion by 2029, predominantly driven by its defence and aerospace sectors. The company expects its net profit to outpace revenue growth during this period, paving the way for a new era of profitability.

Mr. Foo elaborated on the company's strategic plans to scale existing operations, enhance product and project mixes, and reduce costs through improved pricing power and productivity. Additionally, ST Engineering is focused on lowering its debt levels, which will effectively reduce interest expenses.

As ST Engineering embarks on this exciting journey of growth and expansion, shareholders can expect continuous quarterly dividends and an overall promising future. With a winning strategy in place, investors are likely to stay on the edge of their seats for what's next! Don't miss out on the potential windfall—stay tuned for updates!