The business of defense, November 8

Deutz has completed its acquisition of FFG Flensburger Fahrzeugbau, a producer of wheeled and tracked military vehicles.^1–2 It announced the completion with its Nov. 5 nine-month results.¹

The purchase price is €1.6 billion and is to be paid partly in cash and partly in the form of newly issued DEUTZ shares.

Deutz CEO expectation for FFG contribution in 2027 (forecast)over €1 billionplanned

FFG will already be contributing additional revenue of over €1 billion in 2027, with an adjusted EBITDA margin of more than 20%

Source: Deutz releases, July 9 and November 5, 2026

Sources

• www.deutz.com ↗
• www.deutz.com ↗

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FFG is to remain operationally independent while forming the core of Deutz's defense business unit.² Deutz expects it to contribute more than €1 billion in additional revenue in 2027. Its forecast puts FFG's adjusted EBITDA margin above 20% for that year.¹

The July 9 agreement covered 100% of FFG's shares. It set a €1.6 billion purchase price, payable partly in cash and partly in newly issued Deutz shares.²

FFG generated around €760 million in revenue in 2025 under German Commercial Code accounting, Deutz reported in July.²

FFG produces, maintains and modernizes vehicles including armored recovery vehicles, infantry fighting vehicles and armored personnel carriers. Deutz describes FFG as an established partner of the Bundeswehr and armed forces in NATO and Ukraine.²

Deutz's defense business recorded €89.2 million in new orders in the first nine months of 2026. The company expects FFG's inclusion to increase defense's share of group orders substantially from the first quarter of 2027.¹

Ondas announced Nov. 5 that it has signed a definitive agreement to acquire Stemme GmbH, the German airframe manufacturer for its ULTRA long-endurance intelligence, surveillance and reconnaissance (ISR) aircraft. The all-cash transaction would give Ondas full ownership of the supplier as it pursues its production target.¹

Stemmecurrently operates at approximately 25% of production capacityactual

across its Strausberg and Pasewalk, Germany facilities, about 135,571 square feet of design, production and maintenance space

U.S. airframe production capacity345,000 square feet of planned production spaceplanned

Ondas plans to increase utilization of the German facilities and establish U.S. airframe production capacity

targeting 10 aircraft per month by 2028

The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions and regulatory approvals

Source: Ondas release, November 5, 2026

Sources

• www.ondas.com ↗

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In the Nov. 5 release, Ondas Chairman and CEO Eric Brock said acquiring Stemme would give the company “greater control over airframe capacity, cost and schedule.”¹

Stemme operates at approximately 25% of production capacity across its Strausberg and Pasewalk facilities, according to Ondas. Those German sites span approximately 135,571 square feet of design, production and maintenance space. Ondas plans to increase their utilization while establishing U.S. airframe production with 345,000 square feet of planned production space.¹

Ondas says ULTRA is operationally deployed by the U.S. Air Force and is capable of more than 70 hours of flight time with over 400 pounds of payload capacity.¹

The company expects the acquisition to close in the first quarter of 2027, subject to customary closing conditions and regulatory approvals. It disclosed no purchase price in the announcement.¹