Steyr Motors Secures Major Follow-Up Orders

Procurement Milestone Steyr Motors Secures Major Follow-Up Orders for Military Diesel Engines

2025-08-07 Source: Press release 2 min Reading Time

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The Austrian engine manufacturer Steyr Motors has expanded its cooperation with Dutch vehicle OEM Defenture, securing multi-million-euro orders through 2027. The company expects its order backlog to reach a new record level, driven by rising European demand for specialised military mobility solutions.

Steyr Motors AG is a specialist in high-performance diesel engines for defence and critical applications.(Bild: Steyr Motors) — Steyr Motors AG is a specialist in high-performance diesel engines for defence and critical applications.
(Bild: Steyr Motors)

Steyr Motors AG, headquartered in Steyr, Austria, has announced significant follow-up orders from its long-standing partner Defenture, a Dutch manufacturer of tactical vehicles for military and special forces use. The centrepiece of these orders is the M16 high-performance diesel engine, which has been selected as the primary propulsion unit for several major international defence programmes.

The scope of the new contracts extends to vehicles destined for Austrian, Polish, and German special forces units, including the Jagdkommando, Polish special operations forces, and Germany’s Kommando Spezialkräfte (KSK). Four KSK prototypes are currently undergoing field testing, with further orders already under negotiation.

These developments are the result of a closely coordinated technical collaboration between Steyr Motors and Defenture, aimed at tailoring propulsion solutions to the specific operational requirements of elite military units. The M16 engine’s compact design, high torque output, and field-proven reliability have again proven decisive.

CEO Julian Cassutti emphasised the strategic implications: “This contract extension reflects the growing trust in our engine technology and confirms that the much-discussed Zeitenwende in European defence spending is translating into tangible business. Our close technical integration with customers like Defenture continues to drive sustainable growth.”

The company anticipates releasing detailed figures on order intake and backlog in its H1 2025 report at the end of July. In addition to the new Defenture contracts, Steyr Motors expects further orders in the wake of Germany’s planned procurement of 1,000 Leopard tanks and 2,500 armoured vehicles—pointing to strong demand across its customer base.

Founded in Austria, Steyr Motors has carved out a niche as a supplier of high-performance diesel engines for defence vehicles, military boats, and auxiliary power units for tanks and locomotives. In 2024, the company reported an adjusted EBIT margin of 24% and expects to grow revenues by over 40% in 2025 with a production target of 1,250 engines.

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Date: 08.12.2025

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