Krauss‑Maffei Wegmann

Revenue growth of 8 % YoY driven by defence‑systems (especially the Krauss‑Maffei Wegmann (KMW) Leopard‑2 upgrade program) and automotive‑electronics (e‑mobility power‑train components).

Shows the company’s “dual‑track” model – a core defence business that funds and cross‑feeds a fast‑growing civilian technology platform.

Digitally

Strategic focus on “Digital Defence” – a roadmap to integrate AI‑based command‑and‑control (C2) solutions, autonomous ground systems, and secure data‑link services by 2030.

Signals a shift from pure hardware to software‑enabled, network‑centric offerings – a key pillar of the long‑term vision.

CAPEX

Capital allocation plan: 2026‑2030 capex of €3.2 bn, with €1.2 bn earmarked for R&D (≈ 38 % of total capex). Heavy R&D spend underlines the ambition to stay at the forefront of next‑gen defence tech (e‑warfare, directed‑energy, hypersonics).

• Growth Driver: AI‑enabled defence systems and e‑mobility components are the two engines that will push earnings higher and lift margins toward the 12 % target by 2028.

• Risk Lens: Execution risk on large software projects (integration, cybersecurity) and geopolitical exposure (dependence on defence budgets) remain the primary concerns.

• Valuation Outlook (as of Q2 2025): Consensus forward‑PE ≈ 13× (vs. 10‑year average of 11×) – the premium reflects the “digital‑defence” upside but also the higher R&D spend.