Palfinger and the defense business: “Tenders are a matter of one or zero”

Palfinger currently generates less than five percent of its consolidated turnover with the defense industry. However, the technology and crane manufacturer expects “above-average growth” in the defense sector. The establishment of an EU armaments fund worth billions gives cause for hope – also because this will help to smooth out fluctuations in demand in the construction industry.

Palfinger equips recovery vehicles for the Austrian Armed Forces with loader cranes and is currently supplying slipway systems for the Singaporean navy – a technology that makes it possible to safely launch and retrieve boats at sea. The technology and crane manufacturer currently generates less than five percent of its consolidated turnover – a double-digit million figure – from the defense industry. In all likelihood, it will not stop there: since the invasion of Russian troops in Ukraine in 2022 and also due to other projects, Palfinger will grow “disproportionately” in the defense sector, says Gerhard Sturm, Senior Vice President Global Sales & Service.

“The tenders are all decisive – it’s a matter of zero or one,” says Klaus Schreiber, Vice President Sales & Service Marine and Special Solutions, who deliberately chooses to put it in a nutshell. Because if a customer is lost in this segment, “they are sometimes lost for decades”. He has been responsible for the company’s Marine & Defense division since April 2024. His line manager is Gerhard Sturm. Consequently, the two men are familiar with the customs of the defense industry and together they have already won orders at sea and on land.

However, Palfinger has a lot to bring to the table. “We also service ourselves, which gives the customer security and brings us additional business volume,” says Gerhard Sturm. The establishment of a 150 billion euro EU armaments fund now gives us hope: In terms of content, this could have an impact on infrastructural areas such as bridge maintenance or airport operations. “Areas where we are well positioned with our proven civilian standard solutions,” says Sturm.