Original-Research: Steyr Motors AG (von NuWays AG): BUY

Classification of NuWays AG to Steyr Motors AG

Company Name :	Steyr Motors AG
ISIN:	AT0000A3FW25
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 60
Target price on sight of:	12 months
Last rating change:
Analyst:	Simon Keller

Q1 soft, FY26 unchanged

Soft Q1, stronger quarters ahead. While Steyr Motors' Q1 result release was weak, it is not seen to derail the FY26 case. With the guidance confirmed, order visibility still high and several marine defence datapoints supporting the growth story, the focus now shifts to execution from Q2 onwards. In detail:

• Q1 sales came in at € 11.7m (+2% yoy), as larger orders from India and the Middle East shifted into later quarters amid geopolitical tensions around Iran. Adj. EBIT of € 0.9m (€ 2.1m in Q1 25) reflected upfront investments in personnel and capacity as well as the delay of high-margin projects. With a € 308m backlog, c. € 200m of legally binding orders, BUKH entering consolidation from Q2 and FY26 guidance confirmed at € 75-95m sales with an EBIT margin of at least 15%, the remaining quarters are expected to show a growth step-up (eNuW: implied sales c. +52% yoy in Q2-Q4 organically for the lower guidance end).

• U.S. Navy RIB framework supports repeat-order logic. The U.S. Navy has selected eight suppliers for a framework covering up to 474 RIB-class boats, including RIBCRAFT USA, whose U.S. Navy seven meter RIB platform already uses Steyr engines. While firm volumes still depend on specific call-offs, Steyr looks well positioned on future 7m orders given its incumbent engine status on the Navy’s standard 7m RIB. The framework also confirms demand for mission-critical small craft where compact, reliable diesel engines are core equipment. At c. € 30k per engine (eNuW), 7m RIB orders would already represent meaningful unit content, with replacements and spares further improving lifecycle economics.

• USV demand gaining budget support. USVs already look relevant for Steyr, with our estimates implying c. € 10m of related sales in 2026. The U.S. Navy’s latest shipbuilding plan underlines the broader demand trend, with Medium USVs now included in funded procurement plans. For Steyr, the takeaway is that USVs are increasingly moving into real budgets. BUKH improves the company’s positioning, expanding the marine engine range to 24-700hp and adding a broader service base.

• CFO adds execution capacity. The appointment of Björn Krausmann as CFO, effective 1 June 2026, fits Steyr’s scale-up plans. With BUKH entering consolidation from Q2 and several defence programs moving towards execution, his finance, corporate development and M&A background should support integration, capital allocation and profitable international growth.

Steyr’s defence and marine niche remains structurally attractive. Reliability, certification and power density matter more than upfront engine cost, supporting long platform lives, high switching barriers and lifecycle revenues through replacements, spares and service. As the business scales internationally and adds more applications beyond its historic core, the growth profile should become broader, more repeatable and less dependent on single large orders.

BUY, PT € 60, based on DCF.

You can download the research here: steyr-motors-ag-2026-05-21-previewreview-en-1a52a
For additional information visit our website: https://www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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