Rostec's Net Profit Declines by 42% Amid Increased State Defense Orders
Russian state-owned conglomerate Rostec, the largest industrial holding in the country and a major weapons producer, reported a significant decline in net profit by 42% in 2025. Despite a 25% increase in revenue due to state defense orders, the net profit fell to RUB 76.4 billion ($986 million). Rostec CEO Sergey Chemezov attributed the decline to the low profitability of government contracts, which are often fulfilled at artificially low prices, resulting in minimal profit margins. The financial strain has limited Rostec's ability to launch new projects. Additionally, several key subsidiaries, including KamAZ and Uralvagonzavod, reported financial difficulties, with KamAZ experiencing a net loss of RUB 43 billion ($555 million) and Uralvagonzavod cutting 10% of its workforce. 
