Source | RUAG International

RUAG International’s (Zurich, Switzerland) 2025 fiscal year was marked by operational challenges and new strategic directions. With the divestment of several non-space-related business areas — including its aerostructures business to Pilatus — now largely completed, the company has consistently focused on its space business.

“Even though further development of our products, the expansion of our production capacities and the renewal of our digital landscape weighed on our 2025 results, I am proud of our teams’ performance,” says CEO André Wall. “They have achieved important milestones in development and market positioning, laying the foundation for sustainable profitability and competitiveness.”

In the Beyond Gravity space division, the Satellites division once again performed well in the reporting year and delivered profitable growth. The Launchers division overcame key technological challenges in 2025 and achieved decisive successes — including the use of Beyond Gravity products in new launch systems such as Vulcan, Ariane and the dispenser program for Amazon. However, the operating result of Launchers had a significant negative impact on the group’s results.

Negative impact on earnings from launchers business, transformation and one-time effects

The negative earnings development is primarily attributable to high engineering and qualification costs in RUAG’s Launchers Division. These were related to product improvements based on insights from missions in recent years. In linköping (Sweden), the transition from development to series production for the dispenser systems of Amazon’s Leo satellite constellation proved more demanding than planned. Although the production ramp-up was challenging, output increased significantly in Q4 2025 and key qualification issues were resolved. In contrast, the Satellites division performed well in 2025 and had a stabilizing effect on the group’s overall results.

Furthermore, discontinued activities and divestments already completed resulted in financial obligations that had a one-time negative impact of CHF 26.5 million (~$33.5 million)on 2025 annual results. In addition, provisions totaling CHF 39.6 million (~$50.1 million) were set aside in anticipation of further potential risks. Furthermore, costs related to the transformation and digitalization program, as well as negative exchange rate effects, weighed on results.

Efficiency, scaling and active risk management investment

With the completion of its aerostructures divestment, RUAG International has streamlined its structure and further focused its efforts on space. In a dynamically growing, technologically demanding market environment, industrial efficiency, scalability and active risk management are key success factors. Declining launch costs and falling end customer prices per satellite are increasing competitive and margin pressure along the entire value chain are placing high demands on processes, organization and production structures.

To meet these requirements, Beyond Gravity has made targeted investments in recent years to strengthen standardization, industrial efficiency, technological transformation, as well as scalable production and process structures. While these investments weigh on earnings and cash flow in the short-term, they sustainably strengthen efficiency, scalability and competitiveness in the medium-term.

As part of its Value Creation Roadmap, the “EZYone” digitalization project is designed as a comprehensive business transformation that more closely connects people, processes, systems and locations. Following the program launch in Lisbon in 2024, the rollout for Corporate Services in Switzerland in early 2025 and the introduction at the Swedish locations in June 2025, particular focus in fiscal year 2025 was given to the stabilization phase, which tied up significant resources. A phased rollout at additional locations in Switzerland, the U.S., Austria and Finland is planned for 2026.

New ownership, organizational changes

With the Swiss Parliament’s final decision in spring 2025 to keep Beyond Gravity under the ownership of the Swiss Confederation, the company’s strategic starting position has changed. In the future, Beyond Gravity will be more closely aligned with the federal government’s space and security policy objectives. In July 2025, the Federal Council entrusted the Federal Department of Defence, Civil Protection and Sport (DDPS) with ownership oversight and with preparing a consultation draft for the new legal basis for the federal government’s shareholding. In the meantime, the steering group appointed by the DDPS has completed its work on the strategic parameters for the future direction of Beyond Gravity.

As of Jan. 1, 2026, Beyond Gravity streamlined its organization and specifically adapted it to the company’s new size and strategic direction. The Satellites and Launchers divisions were merged into one integrated business organization. At the same time, the executive board was downsized and, since Jan. 1, 2026, consists of André Wall (CEO), Angelo Quabba (CFO) and Oliver Grassmann (COO). Effective April 7, 2026, Dr. Barbara Frei-Spreiter will assume the role of CEO of RUAG International and Beyond Gravity, succeeding Wall.

Future outlook

At the Annual General Meeting on April 20, the board of directors will be strengthened with additional space and technology expertise. This provides a broad and clear foundation for leadership during the next phase under federal ownership.

The focus of fiscal year 2026 is on the consistent reduction of risks and the further industrialization, stabilization and digital transformation of the business, with the aim of sustainably improving profitability from 2027 onward. Priority will be given to products and programs that make a clear contribution to profitability, in particular the targeted expansion of commercial product lines and the strategic shift from a specialized supplier to an integrated systems provider.