Patria Group posted higher net sales and operating profit in the first half of 2025, driven by ongoing deliveries under existing contracts. This came despite a year-on-year drop in new orders, as demand for its armoured vehicle programmes remained strong.
Between January and June 2025, the Finnish defence group reported net sales of EUR 421 million, up 12% compared to the same period in 2024. Operating profit rose 35% to EUR 29.3 million, driven by growth across all business areas. The order backlog reached EUR 2.4 billion by the end of June, reflecting a 5.3% increase year-on-year.
The decline in new orders—EUR 453.5 million in H1 2025 compared to EUR 737.9 million in H1 2024—was attributed to timing differences in major contracts. The prior year’s figure had included a EUR 470 million vehicle order from Sweden under the Common Armoured Vehicle System (CAVS) programme. No comparable high-value vehicle orders were booked in the first half of 2025.
Patria said it had expanded investments to meet rising demand, spurred in part by growing defence budgets across Europe. Operational focus has been directed toward ramping up production capacity for armoured vehicles and improving overall productivity.
The company introduced a new operating model on 1 June, 2025, structured around three main business areas. Patria also marked the opening of its new F-35 production building in Jämsä on 13 June, which will support Finland’s industrial participation in the F-35 programme. The facility is expected to be completed in autumn 2025.
Subsidiary contributions played a role in the company’s performance: Millog positively impacted both net sales and profit, while Nammo contributed to operating profit.
Key Developments in Q2Several strategic developments took place during the second quarter. On 1 April, Denmark became the fifth country to join the CAVS programme, following Finland, Latvia, Sweden, and Germany.
In May, Patria joined a new industry consortium for the AI-WASP project, which aims to develop AI-controlled multifunctional aperture and transceiver technology. The programme secured EUR 45 million in funding from the European Commission.
On 31 May, Patria announced a partnership with Spanish firm GDELS-Santa Bárbara Sistemas to support assembly and maintenance of ASCOD Infantry Fighting Vehicles. Patria’s facility in Valmiera, Latvia, will handle production, with the first units expected in mid-2026.
At the end of June, Patria signed an agreement to sell its 60% stake in Estonian MRO company Milworks OU to Mootor Grupp. The move aligns with Patria’s strategy to consolidate its Baltic maintenance operations at its expanding Latvian site.
Outlook for 2025Patria expects continued growth in 2025, supported by increased defence spending among European NATO members following commitments made at the NATO Summit in The Hague. The company anticipates most of this growth to come from its vehicle business, though prospects for other divisions remain positive.
Still, Patria acknowledged that the scaling-up of vehicle production has taken longer than expected. Management has placed priority on accelerating capacity expansion and fulfilling customer deliveries.
The company also noted that geopolitical uncertainties and broader economic volatility could impact long-term demand and operational conditions, though the extent remains difficult to assess.