On March 14, 2025, Steyr Motors AG announced the establishment of a long-term framework agreement with a Brazilian customer, significantly enhancing its order backlog, which now totals approximately €200 million through 2027. This announcement has resulted in remarkable repercussions for both Steyr Motors and its parent company, Mutares SE & Co. KGaA, in the stock market.
The order backlog consists of firm orders, framework agreements, and non-binding commitments, illustrating the company’s potential for extensive future business. Reporting another anticipated €150 million backlog following new contracts expected to be signed shortly, Steyr Motors expects its revenues to experience substantial growth. According to Julian Cassutti, CEO of Steyr Motors, “The increasing demand for highly efficient drive solutions opens up immense growth potential for us across all business segments.”
The stock performance has been nothing short of phenomenal. Following the announcement of the Brazilian contract, shares of Steyr Motors surged to new heights, reaching 94.00 EUR at one point during trading, marking over 75% increase on the day alone. Mutares shares also saw significant movement, rising approximately 22% as the success of Steyr lifted the overall sentiment surrounding the investment firm.
CEO Cassutti emphasized optimism for future growth, stating, “We are confident the global market conditions will provide substantial opportunities for Steyr Motors.” This sentiment is echoed by the recent uptick in orders from various international markets, including China and the USA, which highlights Steyr's strengthening position across borders.
The accomplishment by Steyr Motors aligns nicely with the current global spike in defense spending. This surge has been attributed to increased military budgets within NATO and other nations. The defense contracts, such as the one recently finalized with Rheinmetall, position Steyr well to supply powerful drives for military vehicles, boats, and tanks. The company’s strategic focus on defense manufacturing places it at the heart of current global defense trends, irrespective of some geopolitical tensions.
The stock valuation of Steyr Motors now stands at €442.0 million, which gives Mutares, the majority shareholder with 70.9% ownership, significant equity at approximately €313.4 million. Despite Steyr’s overwhelming stock performance, Mutares is also viewed as potentially offering more stable and long-term investment options, particularly for those who prefer to minimize risk associated with specific high-volatility stocks.
Looking back, Mutares acquired Steyr from the French arms manufacturer Thales two years ago and took the company public last October. Steyr Motors shares debuted at 15.90 EUR, showcasing incredible growth and investor confidence. The stock offering price was positioned to attract initial investments, and the subsequent increased value has confirmed the market’s favorable outlook on Steyr’s prospects.
While current developments present enticing investment prospects, experts advise taking precautionary measures due to potential fluctuations. Mutares has displayed resilience, bouncing back strongly from earlier challenges, including a short-seller attack last September, which created uncertainty among investors. The recovery of Mutares’ stock to levels beyond those seen before the short-seller event demonstrates the firm’s strength and ability to capitalize on growing markets.
With predictions estimating the company’s non-GAAP EPS (earnings per share) to rise from 5.0 EUR for 2024 to 7.6 EUR by 2026, investors may find the projected valuation appealing. The anticipated profits suggest continued upward momentum for Mutares as it taps additional growth markets, especially within the infrastructure segment, indicated by the investment interest building around projected future contracts.
Determining whether to buy now depends on individual risk tolerance and investment strategy. For those seeking exposure to the booming defense industry, purchasing shares of Steyr Motors may seem viable; meanwhile, Mutares may present itself as the more stable option, balancing investment across various sectors with significant room for profitable growth.
Overall, as Steyr Motors continues to secure attractive contracts and increase its market presence, the potential for Mutares’ leverage to amplify returns remains promising. Strategic investments, careful monitoring of contracts, and the U.S. political environment will be necessary for both short-term and long-term planning.