Steyr Motors increases revenue by 11.2% in Q3 2026 – full-year guidance confirmed

• Group revenue increases by 11.2% to EUR 12.5 million in Q3 (Q3 2025: EUR 11.3 million), slightly exceeding internal expectations
• Gross profit margin improves to 46.6% (Q3 2025: 43.5%)
• Adjusted EBIT increases to EUR 1.4 million (Q3 2025: EUR 0.9 million); adjusted EBIT margin rises to 11.4% (Q3 2025: 8.1%)
• KNDS call-offs, with deliveries commencing in September, as well as call-offs under the Navy SEALs tender
• Promising developments in USVs and the M12PU power generator, including with Avilus, support the long-term growth outlook
• Management Board confirms full-year guidance and expects a seasonally strong final quarter
• Red Cat subsidiary SMOT Acquisition GmbH intends to launch a voluntary public cash offer of EUR 39.00 per Steyr Motors share; Business Combination Agreement (BCA) sets out the framework for the transaction and includes binding commitments regarding the Steyr site and employee protection

Steyr, Austria, 22 October 2026 – Steyr Motors AG (ISIN AT0000A3FW25), one of the world's leading companies in the field of customized engines for mission-critical defense and civil applications, achieved a significant improvement in its operating performance in the third quarter of 2026. Group revenue increased by 11.2% year-on-year, from EUR 11.3 million to EUR 12.5 million. Compared with the second quarter of 2026, this represents an increase of 13.4%. Business performance was therefore slightly above internal expectations.

Operational stabilization in the third quarter

Adjusted EBIT amounted to EUR 1.4 million in the third quarter of 2026 (Q3 2025: EUR 0.9 million), while the adjusted EBIT margin increased from 8.1% to 11.4%. The adjustments primarily related to consulting expenses. EBIT reached EUR 0.4 million (Q3 2025: EUR 0.6 million), corresponding to an EBIT margin of 3.1% (Q3 2025: 5.0%). Gross profit increased from EUR 4.9 million to EUR 5.8 million compared with the prior-year quarter, while the gross profit margin improved from 43.5% to 46.6%. The third-quarter performance thus underscores the operating potential of the business model as revenue recognition gains momentum.

Following the seasonally weaker months of July and August, as expected, Steyr Motors recorded encouraging business momentum, particularly in September.

Revenue growth in the first nine months – earnings impacted by a weak second quarter

In the first nine months of the 2026 financial year, Steyr Motors generated Group revenue of EUR 35.3 million, compared with EUR 34.4 million in the prior-year period, representing growth of 2.7%. EBIT amounted to EUR -0.7 million, compared with EUR 4.0 million in the first nine months of 2025. On an adjusted basis, EBIT reached EUR 1.5 million (9M 2025: EUR 4.3 million), corresponding to an adjusted EBIT margin of 4.3% (9M 2025: 12.6%). Key factors influencing this performance were the timing shifts in international defense projects already communicated at the half-year stage.

Strong order backlog, KNDS and Navy SEALs tender call-offs

The foundation for further business development is an order backlog of more than EUR 300 million extending through 2030. In the European defense business, KNDS also placed call-offs under the existing framework agreement during the third quarter. Deliveries commencing in September 2026 are contributing to the company's growth. The existing framework agreement with KNDS for approximately 500 engine-generator units through 2034 provides a long-term basis for further business development.

In addition, Steyr Motors has recorded call-offs under the Navy SEALs tender covering 500 boats. These developments underscore the strategic importance of the international defense market and Steyr Motors' positioning as a provider of specialized propulsion solutions.

Strategic growth projects show promising progress

In parallel, Steyr Motors continues to consistently advance the implementation of its long-term growth strategy. The company is making encouraging progress, particularly in the areas of unmanned surface vehicles (USVs) and mobile power generation, with a potential framework agreement in prospect. The growing importance of autonomous maritime platforms is opening up additional sales opportunities for Steyr Motors' specialized propulsion solutions.

The mobile power generation project involving the newly developed M12PU power generator is also progressing positively. Among others, Steyr Motors is cooperating with German drone specialist Avilus on the power supply for its unmanned aircraft system. Under this cooperation, Steyr Motors' high-performance power generators are an integral part of the ground-based power supply, enabling efficient flight operations designed to ensure high operational availability. This allows Steyr Motors to extend its positioning beyond its traditional engine business, leverage its technological expertise in additional applications and unlock further growth potential.

Full-year guidance confirmed

For the final quarter of 2026, the Management Board expects a significant acceleration in business activity, building on the momentum already observed in September. Given the typical seasonality of the business, deliveries to KNDS, call-offs under the Navy SEALs tender and planned revenue recognition from other ongoing projects, the fourth quarter is expected to make the largest contribution toward achieving the company's full-year targets.

Against this backdrop, the Management Board confirms its guidance for the 2026 financial year. Steyr Motors continues to expect revenue growth of 15% to 25% year-on-year and an EBIT margin of between 8% and 12%.

Long-term outlook remains intact

From the Management Board's perspective, the long-term growth outlook remains unchanged. Rising defense expenditure, increasing demand for specialized marine propulsion systems, and the growing importance of autonomous systems and mobile power generation provide the foundation for further expansion. Steyr Motors remains focused on converting existing projects into tangible revenue, improving operating profitability and consistently capitalizing on strategic growth opportunities in its core markets.

Julian Cassutti, CEO of Steyr Motors AG, comments: “The third quarter demonstrates that we are gaining operational momentum. With double-digit revenue growth and an improved gross profit margin, we slightly exceeded our internal expectations. Following the seasonally weaker months of July and August, as expected, September was particularly encouraging. We anticipate a further significant acceleration in business activity in the fourth quarter, which, given the typical seasonality of our business, will make a substantial contribution toward achieving our full-year targets. The promising developments in unmanned maritime systems, together with the considerable potential of our M12PU mobile power generator – including in the fields of drones and counter-drone applications – are opening up additional growth opportunities. Combined with our order backlog, we are confident that these developments will significantly strengthen the foundation for sustainable, profitable expansion.”

Tender offer and Business Combination Agreement: binding commitments regarding the Steyr site and employees

As announced on 19 October 2026, SMOT Acquisition GmbH, a wholly owned subsidiary of Red Cat Holdings, Inc., intends to make a voluntary public cash offer to all shareholders of Steyr Motors AG at a price of EUR 39.00 per share. On 21 October 2026, Steyr Motors, SMOT Acquisition GmbH and Red Cat formally agreed on the principles and process of the announced tender offer in a Business Combination Agreement (BCA). The Management Board and the Supervisory Board welcome the offer and, subject to the review of the offer document in accordance with their duties of care and loyalty, will recommend its acceptance in a reasoned statement. Further information is provided in the announcements dated 19 and 21 October 2026.

Subject to successful completion of the transaction, Steyr Motors would gain a strong strategic partner in Red Cat, providing the scale, access to customers and markets, and financial resources required to materially support the company's next phase of growth. The focus is particularly on the further development of Steyr Motors' specialized power units, strengthening the Austrian development and technology site, and integrating the Company into Red Cat's growing platform for unmanned systems. The BCA also provides for specific safeguards for the Steyr site and its employees. These include a commitment to maintain the site for three years following completion of the offer, as well as a commitment by Red Cat not to initiate operationally driven terminations among technical employees for a period of two years.

Company profile of Steyr Motors AG
Headquartered in Steyr, Austria, Steyr Motors AG is a global leader in the development and production of special high-performance engines with high power density and durability. The company's engines are mainly used in defense special vehicles, boats (both defense and civilian), as well as auxiliary power units ("APU") for battle tanks and locomotives.

For further information, please contact:

Steyr Motors AG
Investor Relations
Phone: +43 676 6222367
E-mail: ir@steyr-motors.com
www.steyr-motors.com

Press contact
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Susan Hoffmeister
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E-mail: sh@crossalliance.de
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