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