Singapore Technologies Engineering Ltd (ST Engineering) has reported a significant non-cash impairment of $667m for its iDirect group, citing a rapidly evolving satellite industry and slower-than-expected customer adoption of its Intuition platform. The impairment, assessed as of 30 September 2025, reflects the group’s revised Value in Use (VIU) for iDirect, now valued at $170m compared to its previous carrying amount of $837m.
The satellite communications sector has seen a shift with Non-geostationary Satellite Orbit (NGSO) operators like Starlink and Kuiper deploying thousands of satellites, overshadowing Geostationary Earth Orbit (GEO) operators. This shift has impacted iDirect, which traditionally supplied ground segment equipment to GEO operators. The NGSO operators’ move towards proprietary systems has further reduced demand for iDirect’s offerings.
Despite the challenges, ST Engineering remains optimistic about the long-term prospects of the satellite communications industry. The group is actively exploring strategic options to mitigate risks and enhance iDirect’s customer support capabilities. However, no definitive agreements have been reached, and the outcome of these discussions remains uncertain.
The impairment will be partially offset by recent divestment gains of $258m, contributing to a total cash inflow of $594m. ST Engineering anticipates a positive net profit for the full year 2025, with further updates on the impact of the impairment expected in due course.
