RUAG brings an intensive year to a successful conclusion

New findings regarding past events

During the course of the 2024 financial year, both federal authorities such as the Swiss Federal Audit Office (SFAO) and a renowned law firm (on behalf of RUAG's Board of Directors) conducted in-depth investigations into various business activities carried out by the company in the past. On the one hand, the findings available at the time of the 2024 annual report confirmed already anticipated inconsistencies in business transactions realized by the former RUAG Defence division. On the other hand, they provided new facts on other business activities that were not consistently carried out in accordance with binding guidelines in the past. The reports also revealed that processes and responsibilities within the company and coordination between RUAG and higher-level political bodies must be improved. 

RUAG takes the findings of all reports very seriously. The company will use them to conscientiously press ahead in dealing with the legacy issues on a fact-based foundation and to align the future organization of the company accordingly. Numerous measures have already been introduced and are being implemented.

Business successes and shaping the future

RUAG achieved significant successes in its operational business in 2024. In the Business Area Ground, the “Armored Infantry Fighting Vehicle 2000 Value Retention”, "Mortar 16" and "BODLUV" projects went according to plan. By receiving preliminary approval for the partial final production of four of the new F-35 fighter aircraft ("RIGI" project), the Business Area Air has taken a significant step towards the future. The C2I+ division continues to develop successfully as an integrator in the sensor, intelligence, command and control network (Sensoren-, Nachrichten-, Führungs- und Wirkungsverbund, SNFW) and has been able to intensify its cooperation with the Swiss Armed Forces Cyber Command. RUAG Real Estate generated a pleasing result in its core business and systematically pushed ahead with synergetic site development.

Improved operating performance, challenging liquidity situation

RUAG improved its operating performance in the year under review. In addition, the collateral damage resulting from various loss-making projects was mitigated. Furthermore, the cost-cutting measures mandated by the Executive Board had a positive impact on the company's results. RUAG has thus reached the stabilization phase. RUAG will continue along its chosen path and will do everything in its power to achieve further sustainable earnings improvements in the coming years. The exceptionally high order intake the previous year, partly due to offset business, could not be fully replicated in 2024. However, the figure achieved in 2024 forms a good basis for future, broad-based growth.

Net sales amounted to CHF 775 million. (Previous year: CHF 741). Despite additional expenses in some areas, EBIT rose to CHF 29 million. (EBIT margin 3.8%) - CHF 3 million better than budgeted. 

RUAG's liquidity remains insufficient in the long term. This is because RUAG MRO Holding Ltd was founded with significantly less capital than recommended. At that time, expenses for cleaning up the legacy assets were not taken into account. The liquidity situation remained tense and the company's room for maneuver was significantly limited due to the requirement to avoid taking on any external debt.

Personnel changes and stabilization in the area of operational management

The Chairman of the Board of Directors of RUAG MRO Holding Ltd, Nicolas Perrin, decided in the year under review to step away from his role in an orderly fashion after five intensive years. The Board of Directors elected Dr. Jürg Rötheli as Chairman of the Board of Directors at the Extraordinary General Meeting on 10 December 2024. The AGM also decided on the successor to Heinz Liechti, who stepped down from the Board of Directors in May of the reporting year, electing Roland Leuenberger as a new member of the Board of Directors.

Ralf Müller was appointed as the new CEO of RUAG MRO Holding Ltd as of March 1, 2024, thus assuming overall operational responsibility for the company. Ralf Müller has already implemented many important stabilization measures and achieved strategically significant milestones in key projects. He is also actively promoting the further development of the desired corporate culture and the overall organization.

Focus on further development

With the introduction of the new SAP system, S/4HANA, RUAG reached a milestone in the development of the new structures. The initial disruptions to operational service provision, which are common with such extensive system changes, were gradually minimized. This enabled RUAG to ensure the availability of the Swiss Armed Forces' systems, in accordance with the performance mandate. This stabilization was due in part to the positive cooperation between RUAG and the Swiss Armed Forces. 

For further information on RUAG, please contact Kirsten Hammerich, Senior Media Relations Manager, Kirsten.Hammerich@ruag.ch / Tel. +41 58 467 05 11