Executive Summary

On March 13, 2026, the Federal Council took note of the annual reporting of RUAG MRO Holding AG for 2025. Operating profit (EBIT) rose to 53.1 million francs (previous year: 29.3 million), net sales to 824.6 million francs (previous year: 775 million). Strategic targets were only partially achieved: While financial metrics and compliance progress were assessed positively, the Federal Council criticizes poor on-time delivery and insufficient availability of F/A-18 fighter jets. RUAG MRO remains the primary partner of the Swiss Army for the maintenance of approximately 130 systems.

Persons

Topics

  • Swiss Defense Industry
  • Military Maintenance
  • Corporate Governance
  • Compliance and Control

Clarus Lead

The partial achievement of targets signals a turning point under geopolitical pressure: Europe's security situation compels Switzerland to secure its army's operational capability – and thus the reliability of its defense partner. The Federal Council therefore plans a fundamental structural reform: The consultation on converting RUAG MRO into a special-law joint-stock company runs until April 21, 2026 and is intended to provide the federal government with stronger control instruments. This points to confidence deficits that extend beyond pure financial metrics.

Detailed Summary

RUAG MRO achieved the targeted EBIT margins of 6 to 8 percent in main and third-party business for the first time since 2022. This financial upturn is recognized by the Federal Council as a sign of stable management. However, operational performance remains uneven: The owner records mixed results in customer satisfaction. Particularly problematic is insufficient on-time delivery, which is partly explained by supply delays and impairs the army's operational readiness. For the F/A-18, availability improved but still falls short of air force requirements. In contrast, RUAG MRO largely met performance requirements for ground-based systems.

In the area of compliance and governance, progress is evident: The company has conducted an external compliance audit, established compliance structures, and improved communication with owner entities and the Federal Audit Office (EFK). The Federal Council monitors the implementation of the EFK's 2024 recommendations in quarterly owner meetings. However, the required cultural change within the company is not yet complete – a factor that the federal government considers necessary for sustainable prevention of compliance incidents. The reservations regarding limited discharge decided at the General Assembly on June 17, 2025 remain in place and also apply to 2025.

Key Statements

  • Financial targets 2025 largely achieved: EBIT 53.1 million CHF, sales 824.6 million CHF – for the first time since 2022, target margins of 6–8% met in core business
  • Operational performance incomplete: Poor on-time delivery and insufficient F/A-18 availability jeopardize army readiness
  • Compliance progress, but cultural change incomplete: External audit conducted, governance structures expanded, but sustainable prevention requires change in mentality
  • Structural reform planned: Conversion to special-law joint-stock company with expanded Federal Council control instruments (consultation until 21.04.2026)

Critical Questions

  1. Evidence/Data Quality: What metrics specifically define "on-time delivery," and how is the rate measured? The report names supply delays as a partial cause – do these originate from RUAG MRO or from suppliers?

  2. Conflicts of Interest: To what extent does the planned legislative revision for conversion to a special-law joint-stock company influence the assessment of 2025 performance? Is reform pressure retroactively factored into the evaluation?

  3. Causality: The report links "poor on-time delivery" with "negative impact on army readiness" – are there quantified data on this causality, or is it a qualitative assessment?

  4. Alternatives: Why is conversion to a special-law joint-stock company seen as a solution for governance deficiencies, rather than implementing, for example, increased contractual penalties or performance incentives?

  5. Feasibility: Cultural change is diagnosed as incomplete – what concrete measures does RUAG MRO plan, and how will success be measured?

  6. Side Effects: Does a special-law structure increase RUAG MRO's flexibility in international defense competition, or does it restrict it?

Sources

Primary Source: Federal Council Takes Note of Reporting on RUAG MRO Target Achievement in 2025 – https://www.news.admin.ch/de/newnsb/3yGKaQPQNPfA

Verification Status: ✓ 26.03.2026

This text was created with the support of an AI model. Editorial responsibility: clarus.news | Fact-check: 26.03.2026