The frigate issue Hensoldt is Unlikely to be Affected by the End of the F126 Project

Source: dpa 1 min Reading Time

The Federal Ministry of Defence recently decided not to proceed with the F126 frigate program. Hensoldt is now assessing whether this will have any impact on its business.

A close call! Hensoldt was supposed to supply radar systems for the F126 frigate program, which the federal government has scrapped. That’s no longer going to happen. However, based on initial assessments, it appears that Hensoldt’s business won’t be too badly affected.(Source:  Hensoldt)
A close call! Hensoldt was supposed to supply radar systems for the F126 frigate program, which the federal government has scrapped. That’s no longer going to happen. However, based on initial assessments, it appears that Hensoldt’s business won’t be too badly affected.
(Source: Hensoldt)

The Federal Ministry of Defence intends to pursue the procurement of Meko-A-200-class frigates instead of the F126 frigate program, provided the Bundestag’s Budget Committee approves the plan. The Federal Office for Equipment, Information Technology, and Utilisation of the Bundeswehr has informed the project’s subcontractors accordingly. The specific implications of the terminated project and the contractual settlement are currently being reviewed. Pending final clarification of the next contractual steps, Hensoldt is now closely coordinating the way forward with its contractual partner, Thales Netherlands. Hensoldt would have supplied the TRS-4D maritime surveillance radar for the F126 program.

Hensoldt's short- and medium-term forecast is likely to remain accurate

Radars from the TRS-4D family are already in service on German Navy ships—including the F125-class frigates and the K130-class corvettes. The radar system is also in demand internationally—for example, for the Brazilian Tamandaré-class frigates, which, incidentally, are based on the Meko concept. The total contract value for Hensoldt in the F126 program is just over 200 million euros. Of this amount, more than a third has already been recognised as revenue, according to reports. Revenue in the low double-digit millions is still expected for the current fiscal year. Based on the information currently available, however, Hensoldt does not expect any impact on its short- or medium-term forecast, the company added. How the remaining order backlog will be handled going forward now depends on the specific contractual terms and further coordination with the partners involved.

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