Hensoldt sets €10 bn revenue target for 2035
Hensoldt, the German defence‑electronics manufacturer, used its Capital Markets Day in London to articulate a long‑term growth ambition. The group aims to generate €10 billion of revenue by 2035, having already set an intermediate target of €6 billion for 2030. To achieve this, Hensoldt forecasts annual revenue growth of 15 % to 20 % starting in 2027 and expects its adjusted EBITDA margin to improve by roughly 50 basis points each year, moving from about 19 % in 2026 to around 21 % in 2030.
The company highlighted a robust order environment. At the end of September, the order backlog reached a record €10.4 billion and is projected to rise to approximately €11.2 billion by year‑end. Moreover, Hensoldt’s unweighted pipeline for the 2027‑2032 period is estimated at €110 billion, indicating order intake is expected to outpace revenue growth.
For the current fiscal year 2026, Hensoldt anticipates revenue of roughly €2.8 billion with an adjusted EBITDA margin of about 19 %. The firm plans to fund its expansion while maintaining a dividend payout policy of 30 % to 40 % of adjusted net income. It also retains roughly €1 billion of financial headroom for potential acquisitions.
Capacity expansion is a key pillar of the growth plan. Since 2023, Hensoldt has added about 49,000 square metres of production space and will introduce an additional 46,000 square metres from 2027, including a new air‑defence radar site slated for series production in the second quarter of 2027. Capacity for the flagship TRML‑4D radar has already increased five‑fold over the past three years and is expected to double again within two years.
The workforce is expected to grow from around 10,600 employees this year to about 14,000 by 2029. Chief Executive Officer Oliver Dörre noted that many programme decisions shaping the 2030s will be taken soon and that the emerging platforms will require sensors, software and services for decades. Chief Financial Officer Christian Ladurner emphasized that order intake continues to outpace revenue growth, supporting the expansion plans.
Hensoldt also signalled product milestones: the MDOcore software suite is expected to receive its first customer orders from 2027. In the longer term, the company projects that roughly half of its revenue will be generated outside Germany and that services will account for about 25 % of total sales.
The outlook is underpinned by broader defence‑spending trends. NATO members have pledged to allocate at least 3.5 % of GDP to core defence by 2035, and Germany’s defence budget is slated to exceed €180 billion in 2030, up from approximately €108 billion in the current year, including a special fund. Hensoldt estimates its addressable market for defence electronics to expand at about 10 % per year, reaching roughly €76 billion by 2031.