Global Expansion and Digital Shift: Patria (Finland) – 2024 Performance Review and Growth Outlook

By
Share with your friends

Finland’s Patria Group recorded strong financial growth in 2024, fuelled by defence procurement upticks post-NATO accession. Net sales reached €825.7 million in 2024, a healthy ~12.5 percent increase from €733.8 million in 2023. Patria is expanding globally while strengthening its digital operations.

Last year continued an upward trend – 2023 sales were up from ~€547 million in 2020, reflecting organic growth and acquisitions – as Patria scales to meet rising demand. New orders in 2024 were €1.258 billion, up 33% from €948 million the previous year – growth largely driven by major vehicle contracts. This pushed Patria’s order stock, backlog, to €2.38 billion at end-2024, up from €1.94 billion – a 22% jump.

The company’s profitability also improved: operating profit was €81.8M (9.9% margin) versus €68.9M in 2023. Return on equity rose to ~19.7%, indicating efficient use of capital, even as Patria made significant investments in expanding production capacity – which did increase debt, as seen in net gearing rising to 104%.

Over a 5-year horizon, Patria’s financial trajectory is one of steady growth – supported by Finland’s defence modernization and Patria’s push into new markets. Year 2024’s revenue is the highest in Patria’s history, and the company emerged from a challenging 2020  – when sales were ~€510 million – to robust growth in the 2022–2024 period as European defence spending surged. These economic results underline Patria’s successful transition from a domestic-oriented manufacturer to a more internationally engaged defence supplier. With Finland joining NATO in 2023, Patria’s inclusion in the alliance’s supply networks is expected to further stimulate growth beyond 2024.

Technological Innovations in 2024

Patria’s product portfolio centres on armoured vehicles, weapon systems, and defence support services, with a growing emphasis on digital solutions. In 2024, the company’s most prominent offerings were its armoured modular vehicles, which gained traction in several countries. The Patria 6×6 Armoured Personnel Carrier – part of a joint Common Armoured Vehicle System (CAVS) program by Finland, Latvia, Sweden, and others – proved to be a star product. Patria introduced new variants (such as a Command & Control vehicle) and received follow-on orders; for example, Latvia ordered 56 additional Patria 6×6 vehicles in late 2024.

Demand for the larger Patria AMV (8×8) vehicles also remained solid – these vehicles, known for their modularity and battlefield performance, continued deliveries to countries like Slovakia and Japan. Patria’s NEMO 120mm mortar system – a turreted mortar fitted on vehicles or boats – is another notable innovation; it provides indirect fire support with a unique semi-automatic mortar turret. In 2024, Patria marketed NEMO to various armies as interest in mobile artillery grew, and its combination of firepower and mobility garnered attention – e.g., trials in the Middle East.

A major innovation focus for Patria in 2024 was the digitalization of defence logistics and fleet management. The company’s Patria OPTIME lifecycle service – a digital platform for maintenance, availability tracking, and fleet readiness – was enhanced significantly. Patria made a headline-grabbing move by acquiring the Belgian software firm ILIAS Solutions in January 2025 to bolster its digital capabilities. ILIAS is known for a cutting-edge defence platform for fleet and maintenance management, and integrating it allows Patria to offer data-driven readiness solutions alongside its physical products. This reflects Patria’s strategic shift toward combining hardware with accompanying digital services – e.g., predictive maintenance analytics for vehicle fleets.

In the aerospace domain, Patria continued as a key provider of maintenance, repair, and overhaul (MRO) services for aircraft – notably training aircraft and helicopters – and it is involved in Finland’s F-35 program preparations (for maintenance work when F-35s arrive later in the decade). While Patria’s brand is built on proven platforms rather than flashy new tech, in 2024, it demonstrated innovation by adapting its vehicles with new variants, embracing digital fleet management, and leveraging its deep expertise in systems integration to support customers’ evolving needs.

Sector-by-Sector Business Evolution

Patria’s business spans several sectors: Land (armoured vehicles and weapon systems), Aviation (MRO and pilot training), and Systems (including new digital services). Each area has evolved in recent years:

  • Land Systems: This is Patria’s core, encompassing armoured vehicles (6×6, 8×8 AMV) and armaments (like mortar systems). Patria’s Land business has transformed from serving primarily Finland’s defence forces to supplying a consortium of countries. Through the CAVS program (launched in 2019), Patria successfully brought Latvia, Sweden, and Germany on board for its 6×6 vehicle family. By 2024, nearly 700 units of Patria 6×6 were on order or delivered across these nations. The company also diversified vehicle variants (C2, mortar carrier, ambulance, etc.), showcasing flexibility. Its AMV 8×8 vehicles, combat-proven in Afghanistan and elsewhere, got a boost as the Japan Ground Self-Defense Force selected a derivative of Patria AMV for its new APC (manufactured under license). Patria’s Land segment also includes turreted mortar systems (NEMO) and field artillery integration, which have seen increased interest due to the Ukraine war’s emphasis on indirect fire. Overall, the Land business evolved to be more export-driven and collaborative – e.g., local production in partner countries like Latvia’s new 6×6 factory. This segment was the primary growth driver in 2024, as noted by Patria: “net sales grew, and order stock developed strongly, driven especially by vehicle programmes”.
  • Aviation and Aerospace: Patria has long provided MRO services for military aircraft (Finland’s F/A-18s, rotary-wing fleets, etc.) and co-produces aircraft components (like for Airbus). In 2024, this segment remained stable but is gearing up for expansion. With Finland’s purchase of F-35 fighters, Patria aims to secure a significant role in maintaining and possibly manufacturing components for those jets domestically. Patria also runs the Finnish Air Force’s pilot training through its subsidiary Patria Aviation. While not a manufacturer of aircraft, Patria’s aviation arm is crucial for lifecycle support. In 2024, the company invested in its Tampere and Linnavuori facilities to expand engine and aircraft system MRO capacity in anticipation of greater demand as NATO fleets in the region grow. There is also evolution in unmanned aviation: Patria has worked on a domestic UAV (the Patria Mini-UAV project) and on integrating drones into defense systems, aligning with Finland’s push into unmanned systems. Though smaller than Land, the Aviation segment ensures Patria remains a key player in Finland’s aerospace ecosystem, evolving from servicing only Finnish aircraft to offering training internationally – it has trained pilots from Sweden and others – and possibly servicing allied fleets.
  • Systems and Digital Services: This is a newer area encompassing C5ISR systems, cybersecurity, and the recently reinforced digital maintenance solutions. Patria has a unit focusing on situational awareness systems, C4I, and cyber defence, which has grown in importance as modern militaries seek integrated solutions. In 2024, Patria contributed to Finland’s Army with its CANDL tactical data links and battle management systems, and such offerings are being pitched to other countries as part of vehicle or system sales. The acquisition of ILIAS Solutions in 2025 marks a significant evolution – it establishes Patria as a leading provider of defense logistics software in Europe. By combining ILIAS’s platform with Patria’s OPTIME service, Patria can deliver full-spectrum fleet readiness management to customers (covering everything from predictive maintenance to spare parts management). This strategic broadening into digital services moves Patria up the value chain from just selling hardware to also selling long-term solutions that improve how militaries sustain their equipment. In summary, Patria’s business has evolved from a domestic manufacturer to a multinational defence solutions provider – with Land systems as the anchor but increasing weight on high-tech systems integration and digital services to complement its vehicles and weapons.

Future Outlook and Strategic Direction 2025->

Looking ahead, Patria’s strategic direction is shaped by Finland’s new NATO membership and the digital transformation of defence. The company’s leadership forecasts continued growth, stating “Patria’s growth continued in 2024” and expressing confidence that the trend will go on. A key pillar of Patria’s strategy is to deepen its role in NATO supply chains.

Now that Finland is in NATO, Patria can more readily offer its products to other member states and participate in joint development programs. The CAVS 6×6 vehicle program is a model Patria will replicate – they are actively marketing it to other European NATO countries seeking cost-effective armoured vehicles, with Germany recently joining the program and others showing interest.

Patria’s Vision 2025+ includes being a leading provider of maintenance and lifecycle services for NATO forces in Northern Europe. The company is positioning to handle maintenance for not only Finnish equipment but also potentially for allied equipment regionally (for example, offering its aviation MRO capacity to service NATO aircraft operating in the Baltic region).

Digitally, Patria intends to “seize digital power”, as one analyst phrased it, by leveraging the ILIAS acquisition. By 2025 and beyond, Patria plans to integrate advanced analytics, AI, and IoT sensors into its OPTIME platform to offer militaries real-time fleet health monitoring – a niche that could set Patria apart from pure vehicle manufacturers. This aligns with trends in defence where operational readiness and through-life support are as critical as the platforms themselves.

Geographically, Patria seeks expansion beyond its traditional markets. It established a subsidiary in Belgium via ILIAS and may use that foothold to grow in Western Europe. Patria is also eyeing the Nordic-Baltic region as a unified market – cooperating with Norway’s Kongsberg – which owns 49.9% of Patria – could yield joint export opportunities. Indeed, Patria and Kongsberg already collaborate, e.g., on the Nammo joint venture for munitions, and possibly on missile systems integration in Patria vehicles.

In the mid-term, Patria’s strategy is to reinforce its status as the go-to defence company in Finland, supporting the Finnish Defence Forces in all key projects – from new armoured brigades to fighter jets service, while growing its export business to perhaps 50 percent of revenue. With a strong order book and NATO interoperability credentials, Patria looks to 2025+ as an era of scaling up – increasing production – they invested in a new vehicle production line and expanded staff by about 8% in 2024 – integrating digitally-enhanced offerings, and playing a prominent part in Nordic defence cooperation. The outlook is optimistic: a more tense security environment in Europe ensures demand, and Patria’s challenge will be to deliver on time and continue innovating to stay competitive against larger defence firms.

Export Focus and International Expansion

Exports and international partnerships are increasingly central to Patria’s operations. Once predominantly focused on Finland’s needs, Patria now derives a significant share of its orders from abroad – in 2024, exports were a major contributor to the 33% jump in orders. A cornerstone of Patria’s export strategy is the CAVS 6×6 armoured vehicle programme, a multinational framework that has effectively opened doors to multiple markets with one product family. Through CAVS, Patria’s 6×6 vehicles are being co-produced in Latvia – Patria opened a production facility there in 2024 – and have garnered interest across Europe.

The company also saw new export success in 2024 with its 8×8 AMV: a notable win was the selection of Patria AMV XP by Japan – to be license-built by a local partner– marking a breakthrough into the Asia-Pacific. In the Middle East, Patria has maintained a presence (the UAE and Saudi Arabia operate Patria vehicles and mortar systems), and it continues to pursue contracts there, leveraging Finland’s neutral image and quality products. Patria’s export focus is backed by Finland’s defence diplomacy, which, since NATO entry, has shifted to actively promote Finnish defence products among allies.

Another vector of expansion is via digital services exports. With ILIAS Solutions under its wing, Patria now has a footprint in Belgium and existing ILIAS customers – which include NATO agencies and several militaries – that it can support and build upon . This gives Patria a channel to offer its maintenance management solutions to, for example, the US – where ILIAS had some presence – or other NATO allies looking to modernize their logistics systems. Additionally, Patria has been quietly growing its training services exports – its Pilot Training Academy, in partnership with the Finnish Air Force, has trained pilots from countries like Sweden and could attract more NATO students in the future.

Patria’s integration into Nordic defence industry networks amplifies its global reach. The company’s part ownership by Kongsberg means it can piggyback on Kongsberg’s global marketing and sales channels. Indeed, Patria’s products complement Norway’s – e.g., a country buying NASAMS air defence from Kongsberg might also be pitched Patria’s armoured vehicles for ground forces. The two companies even jointly market solutions (both are co-owners of Nammo for munitions, which sells internationally). Patria is also an active participant in EU defence R&D initiatives, which could lead to future exportable products developed collaboratively.

In terms of physical expansion, aside from the Latvian facility, Patria has a subsidiary in Sweden – to support Swedish vehicle orders – and offices in countries like the US and UAE for marketing. The company will likely increase its on-ground presence in key markets as projects require local support (for instance, setting up a local joint venture if an export deal mandates technology transfer). Overall, Patria is transitioning from a primarily domestic supplier to a regional European player with select global forays. Exports are not just bonus sales but a necessity for scale: Patria’s CEO has noted that being competitive requires volume, which Finland alone cannot provide. Thus, expect Patria to continue pushing aggressively into new markets – especially leveraging the credibility boost of Finland being a NATO member and the heightened interest in Nordic defence solutions after Ukraine. Patria’s export growth in 2024 – orders up one-third – suggests its international strategy is bearing fruit, setting the stage for further expansion in the coming years.

Impact of the War in Ukraine

The Ukraine war has had a profound influence on Patria, both directly and indirectly. As a neighbouring country to Russia, Finland’s security calculus changed overnight in 2022, leading to its NATO application and a resolve to strengthen its defences. Patria, as Finland’s top defence contractor, benefited from this with accelerated domestic programs. For instance, the Finnish Defence Forces moved forward on procuring more armoured vehicles, upgrading artillery, and improving readiness – many of these tasks fell to Patria. The war also drove home the importance of stockpiles and logistics, areas where Patria’s new digital services are focused. The sight of equipment losses and maintenance challenges in Ukraine reinforced the need for robust fleet management – validation for Patria’s push into maintenance software – indeed, the value of high-quality data for decision-making “is increasingly felt…on the battlefield,” Patria noted.

On the international front, the war significantly boosted demand for the kinds of products Patria offers. Eastern European countries, in particular, rushed to acquire modern armoured vehicles to replace Soviet-era gear sent to Ukraine or to expand their armies. This trend was evident in 2024: Patria’s 6×6 vehicle orders from Latvia increased, and discussions with other Baltic states and Poland intensified, as those countries invest in mobility and firepower for their ground forces. Poland’s huge defence ramp-up includes plans for hundreds of new armoured vehicles – Patria’s AMV platform – already in use in Poland as the KTO Rosomak – stands to gain from follow-on orders or support work. Notably, Poland’s transfer of Rosomak APCs to Ukraine in 2023, a variant of Patria’s AMV, meant Warsaw had to backfill those – it ordered new Rosomaks, indirectly benefiting Patria’s Polish licensee and Patria through royalty and support agreements. Thus, Ukraine’s need indirectly created fresh demand.

The war also showcased the effectiveness of mobile mortar systems and rapid troop transport, which play to Patria’s strengths (NEMO mortar, armoured carriers). As Ukrainian and Russian forces both relied heavily on artillery, interest grew in Patria’s NEMO turret as a way to provide nimble indirect fire – several militaries initiated evaluations of NEMO in 2024, seeing its potential to “shoot-and-scoot” faster than towed mortars. Moreover, the conflict underscored the importance of secure communications and situational awareness; Patria’s investments in C4ISR and cyber defence solutions align with those emerging requirements. The Ukraine war elevated Patria’s relevance: Finland’s urgent defence needs became Patria’s workload, NATO membership gave Patria a bigger market, and the conflict’s lessons validated the technologies Patria is investing in armoured protection, firepower, and digital readiness. It is fair to say that without the war, Patria might not have seen such a surge in orders and strategic opportunities in 2024. The company is now positioned as a crucial player in strengthening European defence capacity – exactly the outcome that NATO allies sought after witnessing the Ukraine invasion​

Role in Finland’s Economy and Défense Ecosystem

Patria holds a unique and significant role in Finland’s economy and national defence. It is 50.1% owned by the Finnish government and 49.9% by Kongsberg, making it essentially a state-affiliated enterprise tasked with sustaining Finland’s defence readiness. Economically, Patria is one of Finland’s largest defence and aerospace companies, employing over 3,600 personnel (as of end-2024), many of whom are highly skilled engineers and technicians. It anchors a domestic supply chain that includes smaller subcontractors throughout Finland – thus Patria’s projects support Finnish SMEs and innovation clusters (for example, its vehicle production supports local steel, optics, and electronics industries). In regions like Hämeenlinna and Tampere, where Patria has facilities, it’s a major employer and contributor to regional development.

As Finland’s primary defence manufacturer, Patria provides the Finnish Defence Forces (FDF) with indigenous capabilities that ensure self-reliance. Finland’s doctrine emphasizes territorial defence and endurance; Patria’s ability to produce and maintain critical equipment – armoured vehicles, artillery components, etc. – on Finnish soil is a strategic asset. During the procurement of key systems (like the 6×6 APCs or upgrading infantry fighting vehicles), Patria’s involvement guarantees that maintenance and lifecycle management stay in-country. Patria also co-owns Nammo (through its ownership stake in Nammo’s Finnish half), which produces munitions – an arrangement that secures ammo supply for Finland in crises. In essence, Patria is to Finland what a national arsenal would be: a source of vital defence material and know-how.

Patria’s contributions to Finland’s economy also come via exports, which improve the national trade balance and bring in revenue that can be reinvested in R&D. With Finland’s economy heavily oriented to high-tech sectors like electronics, machinery, Patria fits right in by exporting high-value defence goods and services. Additionally, Patria is part of the country’s innovation engine – it works closely with Finnish research institutes and universities on advanced materials, autonomous systems, and AI for defence, thus stimulating innovation that can spill over to civilian sectors.

Now as a NATO member, Finland is expected to spend at least 2% – an increase to 3% is in political discussion due to US pressure – of GDP on defence, and Patria will be a primary conduit for channelling those funds into tangible capabilities. The company’s health is thus tied to Finland’s security: a strong Patria underpins Finland’s reputation as a country that can “punch above its weight” militarily by leveraging world-class indigenous technology. Indeed, Patria’s flagship products like the AMV have garnered international respect, indirectly bolstering Finland’s status in defence circles. From a national security perspective, Patria ensures that Finland has domestic proficiency in areas like armoured vehicle design, military avionics, and secure communications – crucial in wartime when import supply lines might be cut.

Patria serves as both an economic asset – providing jobs, exports, and technological advancement – and a strategic asset – equipping Finland’s military and strengthening NATO’s European pillar. Its robust performance in 2024 suggests that it will continue to be a backbone of Finland’s defence preparedness and an important contributor to the Nordic region’s collective security, in partnership with firms like Kongsberg and Saab.

Read More:

Must Read