Patria Group’s Interim Report for 1 January – 30 September 2024

Patria’s net sales and order stock development were at a good level in the third quarter 

The third quarter of 2024 

• Patria Group’s net sales for the for the three quarters was EUR 538.1 million (EUR 487.9 million in the comparison period).  
• Operating profit was EUR 30.0 million (EUR 36.9 million).  
• Equity ratio was 33.4% (41.5%) and net gearing 110.8% (80.5%). 
• The third year of Patria’s Horizon 2025 strategy commenced according to expectations. Patria’s net sales and the development of order stock are at a good level and profitability at the expected level. 
• The development of customer-centricity, operational efficiency and productivity and new ways of working continued in the third quarter according to the strategy. The focus of the development has been on Patria’s Operations unit, responsible for company’s production and supply chains, and Portfolio unit, responsible for Patria’s products and services and their development. Patria’s renewed operating model came into force on 1 January, 2024. 
• Patria’s success in 6x6 and 8x8 vehicle programmes has continued, which supports the development of other business operations and Group’s internationalization. 
• The first locally produced Patria 6x6 armoured personnel carrier was handed over to the Latvian National Armed Forces in August. Patria's Valmiera production facility was opened in May. In August, Patria, Finland and Latvia also signed a Life Cycle Management (LCM) contract related to the Common Armored Vehicle System (CAVS) programme. In September, the Finnish Defence Forces redeemed the last 29 Patria 6x6 vehicles that were part of the additional procurement reservation, which were already included in the previously signed series agreement as part of the CAVS programme. 
• In September, it was announced that Patria will provide modification design (Supplemental Type Certificate) for Norwegian Armed Forces Bell 412 helicopters. 
• In September, Patria announced that it acquires an open source data collection product and business related to its cyber business area from WithSecure. As a result of the transaction, Patria will open an office in Oulu, Finland and 10 WithSecure experts working in the business area will join Patria. 
• The multi-year cooperation between the U.S. Army and Patria reached a major milestone at the Maneuver Warfighter Conference in Fort Moore, Georgia in September where several successful fire missions were conducted using Patria NEMO 120 mm Turreted Mortar System, integrated onto a U.S. made Armoured Multi-Purpose Vehicle (AMPV) and Fire Direction System (FCD). 
• In September, Patria and Rheinmetall unveiled first UK prototype Boxer Armoured Mortar Variant at Defence Vehicle Dynamics exhibition. 

Events after the period 

• Patria received authority approval for the Nordic Drones acquisition and transaction of open source data collection product and business from WithSecure and the businesses were transferred to Patria on 1 October, 2024. 

Outlook for the rest of the year 

Patria continues to strengthen its operational efficiency and productivity and seeks profitable growth in line with its Horizon 2025 strategy in the third year of the strategy period. Patria’s reliable and cost-effective lifecycle support services and top-notch products have a key role also in the future in maintaining required performance of customer fleets in all conditions. 

Following Finland’s decision in December 2021 to acquire F-35 fighter jets, negotiations concerning industrial participation of the selected aircraft will continue also in 2024. Preparations to kick off the production are under way, and the resourcing needs are being analysed and the relevant recruiting has commenced. 

The multinational joint CAVS programme of the Patria 6x6 vehicle is proceeding as planned. The serial production of the Finnish and Latvian vehicles is ongoing and the first batch of vehicles to Sweden has been delivered. Germany has officially joined the programme by signing the Technical Arrangement. The joint programme has raised interest and is open also for other countries to join by mutual consent of the participating countries. 

In 2023, Patria and Japan Steel Works Ltd. signed a relating license agreement on manufacturing Patria AMV XP 8x8 vehicles in Japan and the preparations for kicking off manufacturing are ongoing. The start of serial production of Slovakia's 8x8 vehicle project has been slower than expected, which may affect the outlook for the rest of the year. 

The impact of long-term development of the current geopolitical situation, general economic uncertainty, inflation and increasing costs for the rest of the year are difficult to evaluate reliably. At the same time Patria’s delivery capability is expected to stay at a good level. The outlook for net sales and profitability for the rest of the year remains strong. In the mid and long term, Patria and the defence industry in general are likely to see an increase in demand as defence spends are increasing in the majority of European countries. 

Further information: 

[email protected]  

Patria is an international provider of defence, security and aviation life cycle support services, technology solutions and pilot training. Patria provides its aerospace and military customers with equipment availability, continuous performance development as well as selected intelligence, surveillance and management system products and services. Patria’s mission is to give its customers confidence in all conditions, and the vision is to be the #1 partner for critical operations on land, sea and air. Patria has several locations including Finland, Sweden, Norway, Belgium, the Netherlands, Estonia, Latvia and Spain. Patria employs over 3,000 professionals. Patria is owned by the State of Finland (50.1%) and Norwegian Kongsberg Defence & Aerospace AS (49.9%). Patria owns 50% of Nammo, and together these three companies form a leading Nordic defence partnership. www.patriagroup.com