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

Original-Research: Steyr Motors AG - from NuWays AG



20.08.2026 / 09:00 CET/CEST
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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 49
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Simon Keller



Growth delayed, not derailed, chg.



Steyr Motors' profit warning was not entirely unexpected following a weak Q1
and the absence of meaningful new order intake over the summer. Still, Q2
was weaker than anticipated, mainly due to delayed call-offs from key
customers such as KNDS. As postponed volumes are unlikely to be fully
recovered in H2, the company lowered its FY26 guidance. Importantly,
however, there is no indication that orders have been lost, suggesting that
the shortfall is primarily timing-related. We therefore still expect sales
to accelerate in H2 and reiterate our BUY recommendation.



Q2 sales arrived at EUR 11.1m, down 4.5% yoy, despite a EUR 1.9m contribution of
BUKH. On an H1 basis, this implies broadly flat sales yoy. In H1, civil
sales increased by 39% yoy, whereas the delay in defence contracts explain a
30% yoy decline on the other side. Q2 adj. EBIT came in at EUR -0.8m (vs. c. EUR
1.3m in Q2 25), reflecting a margin of -7%, due to a lack of operating
leverage and a mix, that was negatively influenced by lower-margin civilian
sales. H1 adj. EBIT was broadly break-even (EUR 0.1m).



The implied H2 outlook suggests that the awaited ramp-up is already nearing,
indicating a c. 41% yoy growth in H2 at guidance mid-point (eNuW: c. 21%
organic growth yoy in H2). Similarly, at guidance mid-point, the H2 implied
adj. EBIT margin would be at c. 16%.



Looking into 2027, several programmes are seen to step-up. Urovesa won a
five year Spanish MoD contract for 1,000 vehicles, production start is seen
in January 2027, offered on Steyr engines. Meanwhile the Austrian MoD is
tendering 800 vehicles over four years with two Steyr customers in the final
round. Beyond the 500 APU frame contract, KNDS carries a further c. EUR 70m
near-term opportunity. Red Cat's Blue Ops division alone targets production
of over 1,000 USVs in 2027 (source: WorkBoat), with Steyr Motors named one
of two core engine suppliers on the V7, currently the only available model.
Also other USV providers are in discussions with Steyr Motors for sizable
orders. The M12 power unit offers further growth potential beyond the 2026
revenue base, with prototype requests from several MoDs and tier-one OEMs.
Steyr is also participating in an MoD tender for 1,500 containers, each
requiring one M12PU. On the civilian side, the growth potential comes from
the pending Siemens locomotive order for the Finnish Railway and the ramp-up
within the Shangyan-JV (signed with EUR 65m guaranteed sales over a 5-year
period).



Takeover optionality remains another source of share-price support. While
Red Cat withdrew its preliminary, non-binding proposal and no active bid is
currently outstanding, the approach itself validates Steyr Motors' strategic
value. Its compact, high-power-density engines represent a scarce, qualified
capability for mission-critical defence applications that would be difficult
and time-consuming to replicate. For Red Cat, acquiring Steyr Motors could
secure propulsion technology for its expanding unmanned surface vehicle
portfolio, deepen vertical integration and create a meaningful competitive
differentiator. The strategic rationale therefore remains intact, while the
recent share-price correction has lowered the financial hurdle for a
transaction, in our view. Hence, although any renewed approach remains
speculative, the possibility of Red Cat returning should continue to support
the shares.



BUY, new PT EUR 49 (old: EUR 53), based on DCF.



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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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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befindet sich in der vollständigen Analyse.
++++++++++



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