The extraordinarily high level of incoming orders in the previous year, partially due to offsets, could not be fully matched in 2024. Nevertheless, the incoming orders level achieved in 2024 provides a solid basis for future and diversified growth.
Net sales exceeded the previous year’s figure by CHF +34 million (+4.6%), thanks to positive developments in the areas of tracked vehicles, sensors, communication solutions and C2I+.
Despite additional costs incurred in some areas, the EBIT could be increased to CHF 29 million (EBIT margin 3.8%)
– CHF 3 million more than budgeted. Adjusted for the special items, there is a visible improvement compared
to the previous year. The recovery of the Business Areas, which was already initiated two years ago, is evident in the operative business. This is gratifying and encourages RUAG to consistently continue with the chosen path. Although the extraordinary charges are gradually declining, individual provisions still had to be created in 2024 to deal with the remaining legacy issues. The result also includes the additional costs for the ongoing investigation and trailing costs from the SAP S/4HANA implementation at the start of the year. However, disciplined cost management and the aforementioned recovery in the operative business compensated for these negative effects.
In June 2024, RUAG’s liquidity reached a critically low level. The implementation of SAP S/4HANA destabilized
the processes and prompted early ordering to ensure that services could be provided. In addition, advance payments that had originally been expected did not arrive, forcing RUAG to provide the necessary funds. As an immediate measure to strengthen liquidity, cost-cutting measures were implemented and the credit line was fully utilized. By the third quarter, the liquidity situation had stabilized, and at year end, liquidity was CHF 144 million. This amount includes advance payments on DDPS invoices not yet due totaling CHF 35 million. Given the poor state of RUAG’s real estate and the open discussion about expanding Nitrochemie’s capacity, the adjusted liquidity is not sufficient to secure business operations in the medium term. A medium-term financing concept is currently being reviewed with the owner.
For 2025, RUAG plans to achieve an EBIT margin of at least 5% – for the first time since the unbundling. To achieve this goal, RUAG will continue to focus on stabilizing the provision of services and thus securing the positive sales trend. The newly introduced processes and new organization as of April 2025 will require consistent work on clear responsibilities, strong business transparency and sustainable efficiency improvements.