Engineering industry Ruag International will be in the red in 2024
The space technology group Ruag International recorded significantly lower revenues last year. In addition, transformation costs weighed on profitability. All in all, the company slipped into the red.
21.03.2025, 09:49
SDA
It is now waiting for a political decision on a possible privatization freeze. Overall, sales fell by a fifth to 494.9 million Swiss francs, as Ruag International announced on Friday. The civilian business accounted for 88 percent of this figure.
The decline is partly due to the sale of non-space-related parts of the company. Last year, Ruag International disposed of its aerostructures and lithography business. As is well known, the company intends to position itself in the "New Space Economy" with the remaining space business in the long term.
The space company also suffered a drop in profitability. Operating profit (EBIT) fell to 19.9 million Swiss francs after 28.1 million in the previous year. The result includes portfolio effects from sales proceeds of 102.2 million Swiss francs, according to the statement.
Transformation costs burden result
Among other things, the ramp-up of new production facilities had a negative impact, the company writes. In addition, there were transformation costs, investments in product improvements and expenditure on the digital infrastructure of the remaining space subsidiary Beyond Gravity.
The order backlog amounted to 862 million Swiss francs at the end of 2024, the report continues. This corresponds to more than two years' worth of work and demonstrates Beyond Gravity's "solid market position".
The company reported a net loss of 2 million after a net profit of 1 million in the previous year.
Efficiency gains expected in the medium term
The company is confident about the future. The space business is developing dynamically, particularly in the area of commercial satellite constellations and launcher systems. The company has also gained market share, for example in Canada. Beyond Gravity, for example, manufactures fairings for rockets that launch satellites into space.
"Our full focus on space travel is beginning to bear fruit," Group CEO André Wall is quoted as saying. Following the ongoing transformation project, an increase in efficiency is expected in the medium to long term.
The two new production facilities in the USA and Sweden that went into operation last year should contribute to this. Both locations should reach full capacity this year.
At the same time, the "EZYone" transformation program, which has already been launched in Lisbon, is progressing. Sites in Switzerland and Sweden are to follow in 2025. The aim is to "optimize business processes, create a uniform digital infrastructure and improve the networking of global locations".
Privatization process suspended
Last year also brought new uncertainties. While the Federal Council originally wanted to privatize Beyond Gravity by the end of 2025, the National Council's Security Policy Committee submitted a motion in May 2024 to keep the company in federal ownership. This was approved by the Council of States in the spring session, which runs until Friday (today).
According to Ruag International, this means that the privatization cannot be pursued any further. "The Federal Council will now define the new framework conditions, create a legal basis for the federal participation and determine which owner's office will be responsible for Beyond Gravity in the future," the company wrote.
In the meantime, Beyond Gravity will continue to transform itself and position itself for the future in a dynamic market.
