HENSOLDT Targets €10 Billion in Annual Revenue by 2035

The German defense electronics manufacturer has outlined an ambitious expansion strategy, supported by a €10.4 billion order backlog and rising European demand for radar, sensors and software-defined defense capabilities.

German defense technology company HENSOLDT has announced plans to increase annual revenue to €10 billion by 2035, outlining a long-term growth strategy driven by European military modernization, air defense investment and expanding demand for advanced sensor systems.

The target was presented at the company's Capital Markets Day in London on November 10, where management also reaffirmed its ambition to reach €6 billion in annual revenue by 2030.

HENSOLDT reported an order backlog of €10.4 billion as of September 30, 2026, reflecting strong demand for its defense electronics portfolio.

The company expects approximately €2.8 billion in revenue for the full year 2026.

A €110 Billion Potential Sales Pipeline

HENSOLDT identified an unweighted sales pipeline of approximately €110 billion for the period from 2027 to 2032.

The pipeline represents potential business opportunities, not secured contracts or guaranteed future revenue.

Management expects annual revenue growth of 15% to 20% in 2027 and 2028, with growth exceeding 20% toward the end of the decade.

Its adjusted EBITDA margin is projected to increase from approximately 19% in 2026 to around 21% by 2030.

The company also expects orders to grow significantly faster than recognized revenue as European governments expand military investment.

Radar Production Capacity Expands

A central element of HENSOLDT's strategy is expanding production capacity for high-demand products, particularly air defense radar systems.

The company said it has increased production capacity for its TRML-4D radar fivefold over the past three years and plans to double capacity again over the next two years.

TRML-4D is used in modern ground-based air defense architectures, including systems designed to detect and track aircraft, drones and other aerial threats.

The expansion comes as European countries accelerate investment in integrated air and missile defense.

AdriaDefense previously reported that HENSOLDT secured radar orders worth more than €100 million connected to the European Sky Shield Initiative.

The company's latest financial ambitions indicate that its management expects sustained demand beyond the current procurement cycle.

Software-Defined Defense Becomes a Growth Priority

Alongside physical sensors and radar hardware, HENSOLDT is expanding its focus on software and systems integration.

The company expects its first customer orders for MDOcore, a software platform designed to support multidomain operations, from 2027.

This reflects a wider industry transition toward connecting sensors, effectors and command systems through integrated digital architectures.

HENSOLDT also expects its service business to account for approximately one-quarter of annual revenue over the longer term, supported by maintenance and upgrades for deployed equipment.

Europe's Rearmament Drives Long-Term Investment

The company's growth strategy is closely linked to increased defense expenditure across NATO countries, particularly Germany.

HENSOLDT estimates that its addressable global market for defense electronics could expand to approximately €76 billion by 2031.

To prepare, management plans further industrial capacity expansion through 2029, building on production increases expected by mid-2027.

However, achieving the 2035 revenue ambition will depend on future procurement decisions, production execution and the conversion of prospective programs into binding orders.

For European defense suppliers and investors, HENSOLDT's announcement provides another indication of the scale of industrial expansion anticipated in the sector.