Steyr Motors plans acquisitions as it sees boost from defence spending

Steyr Motors AG

25/03/2025 07:29

March 25 (Reuters) - Austrian engine maker Steyr Motors 4X0.VI said on Tuesday it was looking for external acquisitions to expand its business, as it seeks to capitalize on higher defence spending.

It aims to complete at least one acquisition in the current financial year and is looking into the European and Asian markets for potential targets, it said.

The company, which manufactures engines used in defence and civil applications, added it expected growing demand from Europe and international allies in the sector.

"With the special funds approved in Germany, similar scenarios will arise in other large European countries in the coming months and years, and defence budgets will increase significantly," it said in a statement.

Steyr Motors, like its German peer Deutz DEZG.DE, has benefitted from the recent rally in European defence stocks.

Up to Monday's close, its shares were up around 320% year-to-date at 58 euros per share, after reaching a record high of 240 euros per share on March 18.

 (Reporting by Isabel Demetz in Gdansk; editing by Milla Nissi)

 ((Isabel.Demetz@thomsonreuters.com;))