ST Engineering Bullish On A320neos As Revenue Exceeds Pre-Pandemic Levels

Credit: ST Engineering

SINGAPORE—First quarter (Q1) revenue for ST Engineering’s commercial aerospace segment surpassed 2020 pre-COVID levels as the company continues to benefit from recovery across Asia Pacific as well as the popularity of the Airbus narrowbody in the region. 

The Singapore-headquartered company’s commercial aerospace segment reported a 29% year-on-year improvement in Q1 revenue to S$873 million ($658 million), against S$674 million in Q1 2021. The group as a whole, which includes satcom services, defense and public security, posted 13% year-on-year revenue growth, at S$2.3 billion. The company did not release figures reflecting its expenses or net results.

ST Engineering secured S$747 million in contracts during the period, including a new order for at least two A330P2F freighters from a Japanese lessor, CFM56-7B MRO contracts with Asian airlines, and heavy maintenance for American airlines.

The company says its passenger-to-freighter “learning curve” is improving—likely referring to the new P2F lines that will open in China and Turkey.

In its outlook, the MRO-provider said its U.S.-based Middle River Aerostructure Systems (MRAS) business will benefit from the A320neo fleet growth. MRAS is the single-source nacelle provider for the Leap 1A engines, and the company quotes Aviation Week’s 2023 Fleet & MRO Forecast that the Leap 1A is set to account for around 53% of the engine share. ST Engineering quoted figures projecting 7,835 A320neo family deliveries through to 2032.

Chen Chuanren

Chen Chuanren is the Southeast Asia and China Editor for the Aviation Week Network’s (AWN) Air Transport World (ATW) and the Asia-Pacific Defense Correspondent for AWN, joining the team in 2017.