May 16, 2023
SINGAPORE—First-quarter revenue for ST Engineering’s commercial aerospace segment has surpassed 2020 pre-COVID levels.
The Singapore-headquartered company continues to benefit from recovery across the Asia-Pacific region, as well as the popularity of the Airbus A320neo.
The company’s commercial aerospace segment reported 29% year-on-year (YOY) improvement in revenue to S$873 million, against the S$674 million in 2021. The group as a whole, which includes satcom services, posted 13% YOY improvement, at S$2.3 billion.
ST Engineering also secured S$747 million ($563 million) in contracts during the period, including a new order for at least two A330P2F freighters from a Japanese lessor, as well as CFM56-7B MRO contracts with Asian airlines and heavy maintenance for American airlines, the company says.
It adds that the 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 also added that 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 says the Leap 1A looks set to account for around 53% of the engine share.
ST Engineering says they are projecting 7,835 A320neo family deliveries through to 2032.