Federal Council adopts 2026–29 strategic objectives for RUAG International Holding AG

The Swiss Confederation is the sole shareholder of RUAG International. The Federal Council steers the company primarily through strategic objectives, which it sets for a four-year period. The Board of Directors is responsible for managing the company, including the implementation of these strategic objectives, subject to annual review by the Federal Council. In March 2025, Parliament instructed the Federal Council (Motion 24.3477) to retain control over Beyond Gravity, thus requiring the privatisation plans set out in the 2024–27 strategic objectives to be abandoned. Management responsibility was subsequently transferred to the Federal Department of Defence, Civil Protection and Sport (DDPS) from the Federal Department of Finance (FDF).

There is currently no explicit legal basis for the Swiss Confederation’s stake in RUAG International; work is under way on a draft bill for consultation, with the aim of bringing the legal framework into force, if possible, in the course of 2028. In order to provide RUAG International with guidance on its strategic positioning at an early stage, the Federal Council has now adopted the strategic objectives for 2026–29 as a transitional arrangement. These objectives form the basis for the company’s positioning as a globally active Swiss space enterprise, while also taking into account the highly dynamic nature of the industry and the degree of risk associated with space activities.

Strategic positioning in the Swiss and international space sector

The Federal Council’s updated strategic objectives prioritise continuity by largely confirming the previous positioning and specifically intensifying aspects relating to security policy. RUAG International will position itself as a globally active Swiss space company focusing on the Swiss, European and US markets. By offering competitive products and services in the field of civil and military space technology, RUAG International aims to become the DDPS's primary space technology partner within a space ecosystem, thereby helping to support resilient access to space for Switzerland.

In setting these objectives, the Federal Council is aligning the company more closely with security policy interests.

Intensified cooperation with Swiss universities and private companies will also serve to promote Switzerland’s innovative strength. At the same time, any outstanding obligations arising from previous divestment processes must be legally concluded.

New debt limits provide greater financial flexibility

The Federal Council expects RUAG International to operate profitably and to finance its investments primarily from its own resources. In order to take account of the space sector’s capital-intensive innovation cycles, the Federal Council is adjusting the net debt guidelines. Whilst the strategic objectives for 2024–27 called for a debt-free balance sheet in preparation for privatisation, a net debt of up to twice EBITDA is now permitted. This is intended to enable RUAG International to raise debt capital on a limited scale, for example to fund the capital-intensive investments typical of a space company without direct federal funding.

Strategic investments and major investment decisions remain subject to prior consultation with the owner to ensure they are in line with the federal government’s long-term interests.

Retroactive entry into force

The strategic objectives will enter into force retroactively from 1 January 2026, in order to align the mangement of the company with the new political situation.

The new objectives are based on the findings of a broad-based advisory group that the DDPS set up for the strategic further development of Beyond Gravity.