Defense industry - Armaments division opens up new growth horizons for Diehl
The Nuremberg conglomerate Diehl has grown significantly due to its defense division with the air defense system Iris-T. In 2023, the company's revenue increased by 10.8% to 3.88 billion Euro, according to Financial Board Member Jürgen Reimer in Nuremberg. The defense division alone grew by 41% to 1.14 billion Euro.
Business Unit Head Helmut Rauch expects a sales increase in the defense sector of up to 40% for the current year. By 2026, the company aims to reach the two billion Euro revenue mark. The annual profit increased by 109% in 2023 compared to the previous year, amounting to 174 million Euro.
Diehl manufactures the Iris-T air defense system, which is deployed in Ukraine, in several variations. This system, with a range of up to 40 kilometers, is considered a leading short to medium-range air defense system. Diehl plans to bring up to ten of the so-called Fire Units into the market per year. According to Business Unit Head Rauch, 19 countries reportedly purchase products from the Iris-T family for their armed forces, most of which are from NATO. In addition, Diehl Defense earns revenue from munition production.
Besides the defense division, Diehl is active in areas such as aviation or measurement technology. The company equips aircraft with solutions for galley carts or toilets. In total, the Diehl Group consists of five subsidiary companies. The Controls subsidiary recently reported weaker sales figures, where components for household appliances and heating pumps are manufactured. The market for heating pumps in Central Europe has reportedly come to a standstill, says Financial Board Member Reimer.
- Diehl, formerly known for its involvement in aviation and measurement technology, has also established a strong presence in the defense industry, specifically in the production of the Iris-T air defense system, which is currently being utilized in Ukraine.
- In Bavaria, the defense sector of Diehl is experiencing significant growth, surpassing expectations with a sales increase of up to 40% for the current year, largely due to the success of the Iris-T air defense system.
- The German conglomerate Diehl, with its production facilities in various locations, including Nuremberg, is not only supplying its air defense system to Ukraine but also expanding its market, aiming to sell up to ten Fire Units of the Iris-T system annually, with interest from 19 countries, predominantly from NATO.
