Patria Group’s Financial Review for 2024 – preliminary data

Patria’s growth continued in 2024: net sales grew significantly and order stock developed strongly
 

Financial review of 2024 

• Patria Group’s operating profit was EUR 81.8 million (EUR 68.9 million) and net sales EUR 825.7 million (EUR 733.8 million). 
• Value of new orders received was EUR 1,258.2 million (EUR 948.4 million). 
• Equity ratio was 33.9% (40.0%) and net gearing 104.3% (67.5%). 
• Equity ratio and net gearing were affected by investments in production capacity as well as net working capital tied up in the production ramp-up. 
• Patria’s growth continued in 2024. Patria’s net sales grew and order stock developed strongly driven especially by vehicle programmes. Profitability was at the expected level. 
• A major part of operational focus has been on building production capacity for the new vehicle orders as well as developing and enhancing productivity of internal operating model. Production growth was impacted by some ramp-up phase hick-ups during the year, but the performance improved towards the year-end. 
• Millog and Nammo performed in line with the expectations. 

Highlights of 2024 

• The development of customer-centricity, operational efficiency and productivity and joint ways of working continued in 2024, according to Patria’s Horizon 2025 strategy. 
• Patria’s renewed operating model came into force in the beginning of 2024.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 success in 6x6 and 8x8 vehicle programmes has continued, which supports the development of other business operations and Group’s internationalization. By the end of the year, Patria had received orders for over 800 Patria 6x6 vehicles through Common Armoured Vehicle System (CAVS) programme, led by Finland and joined by Latvia, Sweden and Germany.  
• In January 2024, the strategic partnership agreement between Patria and the Finnish Defence Forces was updated.  
• Announced also in January, the Finnish Defence Forces purchased 40 Patria 6x6 armoured vehicles more by redeeming the additional purchase option as part of CAVS agreement. 
• Patria published two agreements in February 2024 on supplying Patria ARIS electronic intelligence systems (ELINT) to European NATO member countries. 
• Kicked off in early 2024, Patria-led eALLIANCE programme, partly funded by Business Finland, will amplify collaboration with the Finnish civilian and defence sector companies. The aim is to develop disruptive digital capabilities for enhanced data sharing and prosessing as well as building a holistic metaverse. 
• In February Patria, DSL (part of KNDS group) and FFG announced that they are teaming up to offer the German design, production, and sustainment of variants of Patria’s 6x6 armoured personnel carrier, which could replace the German FUCHS-fleet. 
• In March the Swedish Defence Procurement Agency (FMV) signed a contract to buy 321 Patria 6x6 vehicles.  
• In March Patria signed a contract with Kongsberg Defence & Aerospace (‘Kongsberg’) for the delivery of PROTECTOR remote weapon stations to more than 300 Sweden’s and Finland’s Patria 6x6 vehicles within the CAVS programme. 
• It was announced in March that Patria and Lockheed Martin signed their second Memorandum of Agreement (MoA) for direct work within Finland´s F-35 industrial participation programme. This MoA provides the contractual framework for the stand-up and qualification of a landing gear doors production line at Patria’s Halli facility in Jämsä, Finland. 
• Change negotiations were held in Patria’s Pilot Training operations during the second quarter on the possible termination of the function during 2025. Alternatively, efforts were being made to find an external successor for the business or part of it. The plan will not have an impact on Patria’s military pilot training activities. 
• Patria's Valmiera armoured vehicle production facility was opened in May. This marked the start of full-cycle production of Patria 6x6 armoured vehicles in Latvia. 
• It was announced in May that Germany proceeded to the research and development agreement phase of the CAVS programme. 
• In June, it was announced that Patria and Pratt & Whitney, an RTX business, signed a Memorandum of Agreement (MoA) that covers the contractual framework for Pratt & Whitney F135 engine production and sustainment projects in Finland by Patria. 
• Patria signed in June a bill of sale for the acquisition of the entire share capital of Nordic Drones Oy ('Nordic Drones'), a Finnish leading drone pilot trainer and manufacturer of drones designed for professional use.  
• In June at Eurosatory in Paris, All Terrain Vehicle (ATV) concept vehicle developed within European Future Highly Mobile Augmented Armoured Systems (FAMOUS) programme was revealed in Patria’s stand.  
• In August, Patria, Finland and Latvia signed a Life Cycle Management (LCM) contract related to the CAVS programme. 
• In September, Patria announced that it acquired an open-source data collection product and business related to its cyber business area from WithSecure. As a result of the transaction, Patria has opened an office in Oulu, Finland. 
• 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. 
• Patria launched Patria TREMOS in October, the robust and cost-effective mortar system that increases the mobility and accuracy of trusted, traditional high firepower mortars. The Finnish Defence Forces acquired a modular 120 mm mortar system from Patria. The procurement involves a pre-series of the new mortar system, set for delivery in 2025. 
• In November, Patria and Latvia agreed on the manufacturing and delivery of 56 additional armoured Patria 6x6 vehicles, on top of the already ongoing deliveries as part of joint CAVS programme. 

Events after the period 

• In early January 2025 it was announced that Patria had signed an agreement with Airways Aviation Group (‘Airways Aviation’) on them acquiring the entire share capital of its subsidiary Patria Pilot Training Oy (‘Patria’s Pilot Training’). As of 1 February, 2025, all employees, operations and ongoing training courses of Patria’s Pilot Training were transferred to Airways Aviation. 
• Announced on 21 January, Patria will deliver an operational border security information system to the Finnish Border Guard together with Solita. 
• Announced on 22 January, Patria and Babcock had agreed partnership on 6x6 vehicle for the UK armed forces. 
• It was announced on 29 January that Patria acquires the cutting-edge Belgium-based digital defence platform provider ILIAS Solutions. With the acquisition of the number-one digital defence platform for fleet management, Patria enhances its standard of digital services. 
• On 30 January it was announced that Germany took final step to full member of CAVS programme. 
• Related to this, on 31 January it was announced that Germany and Patria had signed work package for CAVS Patria 6x6 programme-related mortar variants development. 

Operational focus areas for 2025  

Patria continues to strengthen its operational efficiency and productivity and seeks profitable growth in line with its Horizon 2025 strategy in the fourth 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. The development of digitalization of lifecycle support services will be strengthened in 2025 

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 production in 2026 are under way, 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 deliveries of Latvian, Finnish and Swedish vehicles are ongoing and the vehicles are in operational use. Also Germany is a full member of the programme. The development of production capacity for new vehicle orders will continue in 2025. 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 Japan’s and Slovakia's 8x8 vehicle projects has been slower than expected, which may affect the outlook for the rest of the year.

Outlook for 2025

Patria expects continued growth in 2025 which is supported by strong order stock. Majority of the growth is expected to come from vehicle business, but the outlook for other business areas is also positive. 

The impact of long-term development of the current geopolitical situation, general economic uncertainty, inflation and increasing costs are difficult to evaluate reliably. These items could potentially have significant direct and indirect impact on the demand and Patria’s operations.

Media enquiries and further information: 
 
Sirje Ahvenlampi-Hyvönen, Vice President, Group Communications, Patria, tel. +358 50 557 3822, [email protected] 

Patria is a modern and international defence and technology company with over 100 years of experience. Through our top-notch experts and Through life capability, Protected mobility & defence systems and Battlefield & critical systems products and services, we ensure reliable operations for our customers and serve as a partner in critical functions on land, sea and air - when if is not an option. Patria has offices in Finland, Sweden, Norway, Belgium, the Netherlands, Estonia, Latvia, and Japan.

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