Armament: Hensoldt is targeting sales of ten billion euros by 2035

Munich. The defense supplier Hensoldt wants to increase sales to ten billion euros by 2035. In addition, the sensor and radar specialist from Taufkirchen near Munich wants to ramp up production faster than previously planned and process the order backlog of more than ten billion euros more quickly.

“Today we are delivering what our customers have ordered: on time and in the quality they expect,” said CEO Oliver Dörre on Tuesday at a capital markets day in London. “In addition, we will achieve sales of ten billion euros in 2035 and secure our growth beyond that.” That would be more than four times the turnover last year (2.46 billion euros).

Dörre said that “decisions will be made in a timely manner” about many of the armaments programs that shaped Hensoldt’s business in the 2030s. “Our order intake is growing faster than sales,” added CFO Christian Ladurner. “Since this year, we have been converting the order backlog into sales at an increasingly faster rate.”

The increase in capacity planned for mid-2027 has already been secured, and “further significant growth” is planned for 2029. Hensoldt will increase its workforce from the current 10,600 to 14,000 employees within three years. Sales are expected to increase by 15 to 20 percent in 2027 and 2028, and by the end of the decade there will be more than 20 percent.

“To achieve this growth, we are scaling our entire production system step by step (...) and at an increasing pace,” said Ladurner. As planned, Hensoldt wants to achieve sales of six billion euros by 2030. 2.8 billion are planned for the current year. The operating return on sales (adjusted Ebitda margin) of 19 percent is expected to increase by 0.5 percentage points annually this year and thus reach around 21 percent in 2030. Hensoldt already has scope of around one billion euros for acquisitions, the company explained.