Diehl Group is booming: sales are breaking records and creating thousands of jobs!

Diehl Group is booming: sales are breaking records and creating thousands of jobs!

What is the Diehl Group actually doing in Nuremberg? The traditional family business, owned by the family since 1902, is currently causing a stir. Last year, Diehl recorded impressive sales of over 4.7 billion euros, which corresponds to a whopping increase of almost 21 percent compared to the previous year. This shows that the company, which is also active in the defense industry, is doing really well in business. Over the past few months, especially in 2023, earnings before interest and taxes (EBIT) rose from 260 million euros to over 460 million euros, exceeding optimistic forecasts, such as BR24 reported.

The armaments division, specifically Diehl Defense, was particularly convincing and was able to convince with growth of 60 percent. For comparison: Diehl Aviation and Diehl Metering also achieved positive results. However, Diehl Metall faced a decline in sales due to challenges in metal processing and the crisis in the automotive industry. Diehl Controls also did not grow because sales of heat pumps fell and fewer inverters were sold. Sales of over 4.5 billion euros are already forecast for 2024, which makes it clear: Diehl has big plans.

Investments and expansion

What's happening in terms of investments? Diehl has made it his mission to spend a lot of money. Over 330 million euros went into investments, an increase of 45 percent. Around 400 million euros were earmarked for research and development. The geopolitical situation in particular means that Diehl Defense is planning to expand capacities at all locations. In the long term, almost a billion euros will be invested in the expansion, which also includes a new factory for thermal batteries in Röthenbach. The first test center will also be put into operation soon, like Mercury notes.

The rush for new workers at Diehl is enormous. Over 1,000 new employees were hired last year alone, with the defense and aviation divisions being the main demand. Despite the general shortage of skilled workers, the company is not having any significant difficulties finding suitable employees. Many unsolicited applications come from the automotive industry, which is currently going through difficult times. Those responsible are expecting to create 500 to 600 additional jobs as early as 2024, which will further underpin the company's growth.

The future of the defense industry

A look at the general situation in the defense industry shows that the whole of Europe is currently investing record sums in this sector. Hundreds of billions of euros are being spent on defense, the highest amount since the Second World War. This also leads to the creation of hundreds of thousands of new jobs. Nevertheless, the lack of qualified specialists remains a major challenge, especially for the construction of armaments such as tanks and anti-aircraft systems, experts report. The industry used to be considered unattractive, but the image has now changed. Engineers and managers are now increasingly looking towards the defense industry, which is fueling competition for the best minds South German newspaper emphasized.

Diehl has positioned itself well and appears to be on a growth path for the next few years. The clear focus on the defense industry and the outlook for increasing sales give reason for optimism.