A significant long-term framework agreement with defense group KNDS has cast a favorable light on Steyr Motors’ equity. Market experts at NuWays AG reiterated their buy recommendation yesterday, setting a price target of €60.00. The company’s robust annual results and ambitious guidance for the current year provide additional operational tailwinds alongside this key equipment contract for the Leopard 2 tank.
Strong Financials Underpin Growth Trajectory
The foundation for the company’s expansion was laid with the 2025 financial results, released last Friday. Despite experiencing temporary delays in government budget approvals, annual revenue climbed 16.4% to €48.5 million. Adjusted EBIT reached €7.0 million, translating to an operating margin of 14.5%.
Looking ahead to 2026, management has projected a substantial revenue leap to between €75 million and €95 million. They anticipate maintaining an EBIT margin of at least 15%. These projections are supported by a total order backlog exceeding €300 million. Shareholders will vote on a proposed inaugural dividend of €0.25 per share at the upcoming Annual General Meeting on April 10, 2026.
Should investors sell immediately? Or is it worth buying Steyr Motors?
Multi-Million Euro Leopard 2 Agreement
The central driver behind the positive analyst assessment is the newly secured contract with KNDS, which extends through 2034. Current estimates indicate this deal expands Steyr Motors’ order book by approximately €40 million. The agreement stipulates a firm minimum purchase quantity of 500 motor-generator units for autonomous power supply. These units are primarily destined for integration into the Leopard 2 main battle tank and the Leguan bridge-laying system.
Deliveries are heavily concentrated in the initial years of the contract. The company plans to hand over 100 units in the current year, 2026, which is expected to contribute roughly €8 million in revenue. In total, 80% of the entire contract volume is scheduled to be realized before 2030.
Unmanned Vessels and Strategic Acquisition
Beyond this major defense contract, where is future growth expected to originate? Market analysis indicates that the business segment for unmanned surface vehicles (USVs) is evolving into a significant pillar. Specialists forecast revenue of €10 million from this niche segment in the current year, equating to about 13% of total group sales. The recent agreement to acquire Danish company BUKH A/S is a strategic move aimed precisely at strengthening this position.
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