Could Singapore’s Engineering Stocks Be the Hidden Winners of 2026?

ST Engineering (SGX: S63): Secured S$14 billion in new contracts in 9M2025, bringing its order book to S$32.6 billion, providing strong revenue visibility into 2026. The closure of its loss-making satellite business in 2025 should lead to a cleaner earnings profile.

Seatrium (SGX: 5E2): Boasts a net order book of S$16.6 billion with revenue visibility through 2031. The anticipated conclusion of low-margin legacy contracts by the end of FY2026 is expected to pave the way for higher-margin offshore renewable and energy projects.

Sembcorp Industries (SGX: U96): Reported a net profit of S$536 million in 1H2025, driven by stable utilities earnings and growth in its renewables segment. Its hybrid model balances growth with defensive cash flow.

AI Integration: ST Engineering’s Defense & Public Security and Urban Solutions segments are set to benefit from AI-enabled projects in surveillance, autonomy, and satcom. According to Meyka AI, the S63.SI stock closed at S$9.60 on 16 Jan 2026. Meyka AI rates S63.SI with a score of 70.57 out of 100, which is a B+ grade with a BUY suggestion.

ST Engineering: With a robust contract pipeline and a focus on defence and public security projects, ST Engineering offers long-term stability. Investors should monitor its order book growth, project margins, and cost-control discipline.

Seatrium: The company's shift towards higher-margin offshore renewable and energy projects is expected to improve its profitability profile. Yangzijiang Shipbuilding is also well-positioned with a significant portion of its order book concentrated in high-value “green” dual-fuel and LNG vessels.

Sembcorp Industries: By integrating engineering expertise with utilities and renewable energy operations, Sembcorp offers a hybrid model that balances growth with defensive cash flow. Its ability to establish long-term contracts for offtake supply allows for stability in the cyclical performance of the business.

A:: They offer stable long-term earning power, consistent cash flow, and high predictability, rare qualities in today’s market.

A:: Increasing geopolitical instability, rising defence spending, infrastructure modernization, and the shift towards renewable energy sources.

A:: Order book growth, project margins, cost-control discipline, cash flow conversion, and the strength of the balance sheet.

Singapore's engineering stocks, such as ST Engineering, Seatrium, and Sembcorp, offer stable long-term earning potential.

Structural tailwinds, including increased defence spending and infrastructure modernization, support the sector's growth.

Investors should monitor order book quality, project margins, and cash flow to assess the performance of these companies.