RUAG International focuses on space – investments in production capacities and digital transformation weigh on operating result

RUAG International systematically continued its transformation into a pure space company in 2024. A key step was the sale of the Lithography division to Carl ZEISS SMT, which was successfully completed at the beginning of December 2024. This gives the division a long-term perspective with a global leader in semiconductor technology. "This strategic step allows us to focus on our space business as planned and at the same time creates the best prospects for our former colleagues with ZEISS SMT," says André Wall, CEO of RUAG International and Beyond Gravity. The divestments in the Aerostructures business unit also reached important milestones in 2024. Following the successful takeover of the German and Hungarian sites by Mubea in November 2023, the gradual transfer of the remaining employees of the total workforce of around 230 at RUAG Aerostructures Schweiz AG to Pilatus Flugzeugwerke AG is expected to be completed by the end of 2025. These divestments are key milestones in the owner's strategy, enabling RUAG International to further expand its space business and seize the opportunities of the New Space Economy.

Challenges at Launchers and transformation costs weigh on result

RUAG International reported net sales of CHF 494.9 million for the 2024 financial year (previous year: CHF 620 million), 88 % of which came from civil activities. EBIT amounted to CHF 19.9 million (previous year CHF 28.1 million). However, this result includes portfolio effects from divestment proceeds amounting to CHF 102.2 million. The operating result was impacted in particular by the ramp-up of the new production facilities and the necessary product improvements based on new findings from ongoing missions in the Launchers division. There were also additional costs for the transformation of business processes and the digital infrastructure of Beyond Gravity. Free cash flow amounted to CHF 114.3 million (previous year: CHF 88.5 million). This includes cash inflows of CHF 130.7 million from divestments. Excluding the proceeds from divestments, operating free cash flow amounted to CHF -16.4 million (previous year CHF -79.9 million). This was impacted in particular by the high level of investment activities required for the expansion of the Space business. The order backlog as of December 31, 2024 amounted to CHF 862 million, which corresponds to a work volume of more than two years and underlines Beyond Gravity's solid market position.

Solid market position despite operational challenges

Beyond Gravity, RUAG International's space business, further consolidated its position as a key supplier to the global space industry in 2024. The market is developing dynamically, particularly in the area of commercial satellite constellations and launch vehicle systems. The company was able to further expand its market position with new projects, including a major order from Canadian satellite manufacturer MDA Space to supply on-board computers with integrated navigation receivers. "Our full focus on space is beginning to bear fruit. We have deepened strategic customer partnerships, driven innovation and expanded our global presence," says André Wall. "At the same time, the 2024 financial year was characterized by operational challenges. While burdens from the Launchers division and the EZYone transformation project still had a negative impact on the operating result, we expect an increase in efficiency in the medium to long term.”

Expansion of production capacities and efficiency leap into the future

In 2024, Beyond Gravity put two new production facilities into operation: one in Decatur (USA) and one in Linköping (Sweden). In Decatur, the focus is on the series production of structures for launch vehicles, particularly for the commercial market. The new production hall in Linköping is geared towards separation and satellite dispenser systems. It plays a central role in the implementation of the major order for Amazon's Kuiper constellation – one of the world's largest commercial satellite projects. Both sites will reach full capacity in 2025 and will make a significant contribution to scaling production and increasing efficiency. At the same time, the "EZYone" transformation program is progressing systematically. Following the successful introduction at the Lisbon site, EZYone will be rolled out at other sites in Switzerland and Sweden in 2025. The goal is to optimize business processes, establish a unified digital infrastructure, and enhance connectivity across global locations.

Political decision on Beyond Gravity’s privatization

After the Swiss Federal Council reaffirmed its goal in November 2023 to privatize Beyond Gravity by the end of 2025, the National Council’s Security Policy Committee launched a motion in May 2024 to keep the company under federal ownership. The National Council approved the motion during the autumn session. In early November, the Security Policy Committee of the Council of States also decided to support the motion, leading to the suspension of the privatization process. During the winter session, another motion was introduced in the Council of States. While it aimed to proceed with privatization, it proposed additional conditions. However, in the spring session of 2025, the Council of States ultimately approved the motion calling for a complete halt to privatization, making it clear that the process will not move forward. The Federal Council will now define new framework conditions, establish a legal basis for federal ownership, and determine which governmental entity will be responsible for Beyond Gravity in the future. In alignment with its owner, Beyond Gravity continues to drive its transformation forward, investing purposefully in the future and adapting to the demands of a rapidly evolving market.

The Key Figures for RUAG International at a Glance

Further information on RUAG International's 2024 annual financial results can be found at http://annualreport.ruag.com.

Further information on RUAG International can be found at www.ruag.com and for Beyond Gravity at www.beyondgravity.com. 

Contact for media representatives
Philipp Bircher, VP Communications & Branding +41 79 790 11 81, philipp.bircher@beyondgravity.com

RUAG International is a Swiss technology group with a focus on aerospace. With sites in seven countries, the company is divided into the Space and Aerostructures divisions.