Editorial 2025

RUAG looks back at an intensive, dynamic reporting year with ambivalent characteristics. On the one hand, decisive, future-relevant successes were achieved. RUAG stabilized and completed the highest management level, achieved key milestones in forward-looking projects and reduced legacy issues. On the other hand, the Group is still in a demanding transformation phase, which in some cases had an impact on core business performance. The continuous improvement of collaboration with the main customer, the Swiss Armed Forces, therefore remains an absolute priority.

Looking towards the future

The Board of Directors of RUAG MRO Holding Ltd was reconstituted in the 2025 reporting year. At the beginning of the year, Jürg Rötheli took over as Chair and Roland Leuenberger joined the Board of Directors. Jean-Marc Lenz and Claudia Bidwell joined the Board of Directors during the year, contributing their extensive expertise and wealth of experience.

RUAG achieved a decisive milestone for the future with the “RIGI” project, which involves the final assembly and testing of four of the ordered F-35A fighter jets at the Emmen site. The Federal Department of Defence, Civil Protection and Sport (DDPS) supports the project and thus enables RUAG to develop into a European center for military aviation.

To be able to shape the company’s future unencumbered, RUAG invested in the further reduction of legacy issues. Among other things, the company managed to sell the Leopard 1 tanks stationed in Italy and thereby liquidate the inventory entirely.

As a security company owned by the federal government, RUAG has a special responsibility. The public, policymakers and, in particular, our main customer, the Swiss Armed Forces, rightly have high expectations regarding trans parency, integrity, performance and reliability. We are fully committed to meeting these standards.

RUAG continues to develop, but has not yet achieved its objective

RUAG has taken and continues to take the reports published by the Swiss Federal Audit Office (SFAO) very seriously, immediately ordering effective measures and consistently implementing the recommendations. Legal action was taken against individuals who were alleged to have acted unlawfully in the past. In addition, RUAG implemented a new company structure, initiated an audit of compliance processes by external experts and developed the company culture with targeted initiatives. Despite these measures, work to address the past is not yet complete. The compliance culture and governance structures must continue to be professionalized and consistently put into practice. Integrity and transparency are not formal requirements, but guiding principles that govern our actions.

In the context of this end-to-end work, the forensic investigation performed by law firm “Niederer Kraft Frey”, which was continued during the reporting year, is a key aspect.

We have clearly recognized the deficiencies identified to date. They not only concern processes, but also attitudes and responsibilities. We know that the path we have taken is demanding, and our work is not yet finished. Changing culture and management sustainably requires time, consistency and a role model at all levels.

On track financially and strategically

RUAG looks back on a reporting year marked by strong operational performance. With an EBIT of over six percent, an increase in net sales to CHF 824.6 million and a noticeable stabilization of liquidity, the key performance indicators are pointing in the right direction to increase strategic flexibility. Despite various extraordinary charges, RUAG was able to successfully carry out its operational activities, thereby demonstrating its robust performance. Nevertheless, the Board of Directors and the Executive Board are fully aware that the performance must be continuously developed and optimized in the customers’ interest.

In the reporting year, RUAG has achieved, at least in part, the strategic objectives of the Federal Council and recorded a slight improvement compared to the previous year’s figures.

Strengthening of trust-based partnership

Both the Board of Directors and the Executive Board are confident that RUAG, as a high-performing security
company owned by the federal government, can once again play a more prominent role in the security policy landscape of Switzerland. The initiated change processes are being pursued consistently, company culture strengthened and operational performance with respect to the main customer, the Swiss Armed Forces, improved. With all these measures, RUAG aims to restore the trust of policymakers and society and position itself as a reliable partner within the Swiss security architecture over the long term. Trust is not created through words, but through transparent, consistent action. We will be held accountable to this standard.

Dr. Jürg Rötheli, Chairman of the Board of Directors

Ralf Müller, CEO