Steyr Motors AG $4X0 (-0,37 %)an investment company from the Mutares portfolio $MUX (+0,09 %) and listed on the stock exchange since the end of October, can score points today with an "exclusive supply agreement".
Even if the share price has tended to move sideways since the listing, such news may well form the basis for future price surprises.
PALFINGER $PAL (-0,22 %) has secured the supply of engines from the Steyr portfolio as part of a two-year supply agreement. For Steyr Motors, this is proof of its "leading position" in the field of maritime propulsion solutions. Or in the words of the CEO of Steyr Motors AG, Julian Cassutti: "The cooperation with PALFINGER underpins our commitment and our leading market position for innovative and reliable propulsion solutions. The partnership with PALFINGER enables us to further expand our service network and at the same time increase the competitiveness of our partners in the global maritime market."
What is the Steyer Palfinger contract about?
PALFINGER's marine business includes cranes, winches, lifting and handling solutions, slipway systems, boats, davits and fenders, providing solutions for all major maritime segments, including offshore, oil and gas, trade and transport, cruise and passenger vessels, governmental organizations, wind and aquaculture. PALFINGER also has its own service centers worldwide. An important aspect of the partnership is the close cooperation between the two companies, particularly in the area of the service network.
Steyer Motors can do more than just "defensive"
The contract covers the supply of engines that will be used in various applications in PALFINGER's maritime product range, such as fast rescue boats and free-fall lifeboats. Steyr Motors stands for the development and production of special high-performance engines with high power density and durability. And this is of course a particularly good fit for the currently booming main target market: the company's engines are mainly used in special defense vehicles, boats (both defense and civilian) and as auxiliary power units ("APU") for battle tanks and locomotives. And sales of EUR 41 to 45 million and adjusted EBIT of between EUR 9 and 11 million are expected for 2024 as a whole.
This would put Steyr well on the way to laying a strong foundation for the 2025 targets. This is because Steyr Motors is aiming for year-on-year sales growth of over 40% in 2025. In addition, an adjusted EBIT margin of over 20% and a production volume of more than 1,250 units. As already mentioned, Steyr operates in a booming market and meets the high quality and durability requirements of defense customers.
