FORM 5

 o Check box if no longer
subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

 o Form 3 Holdings Reported

 o Form 4 Transactions Reported

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility
Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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 1. Name and Address of Reporting Person*

(Last)            (First)              (Middle)

(Street)

(City)       (State)          (Zip)

 2. Issuer Name and Ticker
    or Trading Symbol

STEWART & STEVENSON SERVICES, INC.
(SVC)

 3. I.R.S. Identification
    Number of Reporting
    Person, if an entity
    (voluntary)

 4. Statement for Month/Year

1/31/2003

 5. If Amendment, Date of
    Original (Month/Year)

 6. Relationship of Reporting Person(s) to Issuer
    (Check all applicable)

     Director

 X   Officer (give title below)

     10% Owner

     Other (specify below)

  Vice President  

 7. Individual or Joint/Group Reporting
    (check applicable line)

 X   Form Filed by One Reporting Person

      Form Filed by More than One Reporting Person

1. Title of
    Security
    (Instr. 3)

2. Transaction     Date
    (Month/Day/
    Year)

2A. Deemed
      Execution Date,
      if any
      (Month/Day/Year)

3. Transaction
    Code
    (Instr. 8)

4. Securities Acquired (A)
    or Disposed of (D)
    (Instr. 3, 4, and 5)

5. Amount of
    Securities
    Beneficially
    Owned at the
    end of Issuer's     Fiscal Year
    (Instr. 3 and 4)

6. Owner-
    ship
    Form:
    Direct(D)
    or
    Indirect (I)
    (Instr. 4)

7.  Nature of
     Indirect
     Beneficial
     Ownership
     (Instr. 4)

Amount

(A) or (D)

Price

Table II — Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security
(Instr. 3)

2. Conver sion or Exercise Price of Derivative Security

3. Transaction Date
(Month/
Day/Year)

3A. Deemed Execution Date, if any (Month/
Day/Year)

4. Transaction Code
(Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 

6. Date Exercisable and Expiration Date
(Month/Day/Year)

7. Title and Amount of Underlying Securities
(Instr. 3 and 4)

8. Price of Derivative Security
(Instr. 5)

9. Number of Derivative Securities Beneficially Owned at End of Year
(Instr. 4)

10.Ownership of Derivative Security:
Direct (D) or Indirect (I)
(Instr. 4)

11. Nature of Indirect Beneficial Ownership
(Instr. 4)

(A)

(D)

Date
Exercisable

Expiration
Date

Title

Amount or Number of Shares

Non-Qualified Stock Option
(right to buy)

$17.70

04/08/02

A

10,000

(1)

04/08/12

Common Stock

10,000

(2)

10,000

D

Non-Qualified Stock Option
(right to buy)

$18.54

03/25/02

A

5,000

(3)

03/25/12

Common Stock

5,000

(2)

5,000

D

Explanation of Responses:

(1) The stock option becomes exercisable in four equal annual installments commencing 4/8/03.

(2) Granted under the 1988 Nonstatutory Stock Option Plan.

(3) The stock option becomes exercisable in four equal annual installments commencing 3/25/03.

** Signature of Reporting Person

Date