The war in Ukraine has caused many countries to rethink their defense spending. Companies like the Diehl Group from Nuremberg are benefiting from the new need for security.
The Nuremberg-based conglomerate Diehl is growing significantly thanks to its defense division with the Iris-T air defense system. In 2023, group sales climbed by 10.8 percent to 3.88 billion euros, announced CFO Jürgen Reimer in Nuremberg. The defense division alone grew by 41 percent to 1.14 billion euros.
Divisional director Helmut Rauch expects a further jump in sales of up to 40 percent in the defense sector for the current year. The threshold of two billion euros in sales is to be reached by 2026. The annual profit jumped by 109 percent to 174 million euros in 2023 compared to the previous year.
Diehl produces several versions of the Iris-T air defense system, which is also used in Ukraine. The system, with a range of up to 40 kilometers, is considered the leading short- to low-range air defense system. Diehl plans to bring up to ten of the so-called fire units onto the market each year. According to Rauch, a total of 19 countries purchase products from the Iris-T family for their armed forces, most of them from NATO. Diehl Defence also earns money from the manufacture of ammunition.
In addition to the defense division, Diehl is active in areas such as aviation and measurement technology. For example, the group equips aircraft with solutions for luggage compartments and toilets. In total, the Diehl Group consists of five subgroups. The Controls subgroup, which produces control elements for household appliances and heat pumps, recently reported weaker sales figures. The market for heat pumps in Central Europe has come to a complete standstill, says CFO Reimer.
Source: Stern
