Original-Research: Steyr Motors AG (von NuWays AG): BUY

Original-Research: Steyr Motors AG - from NuWays AG

30.07.2026 / 09:00 CET/CEST

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Classification of NuWays AG to Steyr Motors AG

Company Name: Steyr Motors AG

ISIN: AT0000A3FW25

Reason for the research: Update

Recommendation: BUY

Target price: EUR 53

Target price on sight of: 12 months

Last rating change:

Analyst: Simon Keller

Bidder validation, delayed conversion; chg.

Withdrawn Red Cat approach underlines USV as a core growth market. Steyr

Motors had attracted a preliminary, non-binding takeover approach from US

drone and robotics group Red Cat Holdings. Red Cat has since withdrawn its

proposal and states that it has no active proposal outstanding. A leak of

the plans or disagreement over terms could be behind this, though neither

side has given a reason. There are two takeaways, in our view: First, a US

platform player saw enough strategic value in Steyr Motors to move towards a

full takeover, which speaks to the company's standing as a mission-critical

and hard to displace supplier, where owning the asset would create a clear

USP for the acquirer. Second, the USV market confirms itself as a core

growth market for Steyr Motors, given that this is precisely the domain Red

Cat is scaling into.

Red Cat has the balance sheet for a renewed approach. The US drone

manufacturer trades at a market cap slightly above USD 1bn on LTM revenue of

USD 55m as of Q1 26, reflecting triple digit organic growth and leaving it

with highly rated paper as well as cash of c. USD 300-400m following a

recent capital increase (eNuW). Against a current market value for Steyr

Motors of c. EUR 200m, a deal is financially within reach. We regard the

industrial logic as sound, hence takeover speculation should remain a

support for the shares.

At the same time, Steyr Motors near-term visibility, however, remains

limited. While the order backlog stands at EUR >300m on a long-term view, only

EUR 37m are still scheduled for 2026. While this was known earlier this year

already, there is still no news on orders for locomotives, the K2 main

battle tank or any further USVs. Following soft Q1 sales, this lack of

announcements warrants caution, in our view. We read the pattern as

postponement, with orders potentially still landing during the course of

this year, albeit late enough to leave little room to convert them into 2026

revenues. We consequently reduce our estimates below guidance, with a

disproportionate effect on profitability given the operating leverage in the

model (eNuW).

Beyond 2026, the less visible parts of the pipeline carry the case. Urovesa

appears to have won a five year Spanish MoD contract for 1,000 vehicles from

January 2027, offered on Steyr engines. Meanwhile the Austrian MoD is

tendering 800 vehicles over four years with two Steyr customers in the final

round. Both look likely to result in orders for Steyr Motors. Beyond the 500

APU frame contract, KNDS carries a further c. EUR 70m near-term opportunity.

Red Cat's Blue Ops division alone targets production of over 1,000 USVs in

2027 (source: WorkBoat), with Steyr Motors the sole named engine supplier on

the V7, currently the only available model. The M12 power unit further

supports the upside potential, with prototype requests from several MoDs and

tier one OEMs for drone charging and directed energy applications.

Against a weaker 2026 phasing and an intact medium-term ramp, we reiterate

BUY with a new PT of EUR 53 (old: EUR 60), based on DCF.

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