Austria's Steyr Motors Q3 revenue rises 11.2% on defense contracts

Overview

• Austria engine maker's Q3 revenue rose 11.2% yr/yr, slightly above internal expectations

• Adjusted EBIT and gross profit margin improved from prior year

• Company confirmed full-year guidance, expects seasonally strong Q4

Outlook

• Steyr Motors confirms 2026 guidance for revenue growth of 15%-25% and EBIT margin of 8%-12%

• Company expects a significant acceleration in business activity in Q4 2026 due to seasonality

• Steyr Motors says long-term growth outlook remains unchanged, citing rising defense spending and demand for autonomous systems

Result Drivers

• DEFENSE CONTRACTS - KNDS call-offs and Navy SEALs tender deliveries in September contributed to Q3 growth

• SEASONALITY - Business momentum picked up after weaker July and August, with September driving improved results

• GROWTH PROJECTS - Progress in unmanned surface vehicles and M12PU power generator projects supported long-term outlook

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Steyr Motors AG is €49.00, about 37.6% above its October 21 closing price of €35.62

Reuters Recommended Reads

• Oct 19 - US drone firm Red Cat seeks control of Austria's Steyr Motors in $230 million deal

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• Oct 21 - Europe weighs giving utilities, infrastructure companies more powers to bring down drones

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)