HENSOLDT: Accelerating Transformation to Software-Driven Defence

Financial Performance HENSOLDT accelerates transformation into software-driven defence provider

2025-11-13 Source: Hensoldt 3 min Reading Time

Related Vendors

At its 2025 Capital Markets Day in Ulm, Germany, HENSOLDT presented its strategic progress under the banner “Delivering North Star – A new era for our business.” The company outlined how it is evolving from a defence electronics manufacturer into a scalable, multi-domain solutions provider driven by software, data integration and industrial performance. Alongside this transformation, HENSOLDT raised its financial guidance, projecting continued double-digit growth and stronger profitability through the end of the decade.

HENSOLDT headquarters in Taufkirchen, Germany: the company’s Capital Markets Day 2025 outlined its strategic path toward a fully integrated, software-driven defence systems provider.(Source: HENSOLDT AG) — HENSOLDT headquarters in Taufkirchen, Germany: the company’s Capital Markets Day 2025 outlined its strategic path toward a fully integrated, software-driven defence systems provider.
(Source: HENSOLDT AG)

HENSOLDT’s transformation centres on its ambition to become Europe’s leading provider of integrated, software-defined defence (SDD) systems. The company is expanding its role from manufacturing individual sensors to delivering interconnected mission architectures that enable real-time data fusion and cross-domain decision-making.
CEO Oliver Dörre described the shift as both a growth opportunity and a responsibility: “Our customers expect us to ensure operational readiness today while developing the capabilities of tomorrow. With the expansion of our production capacities and the development of our MDOcore architecture, we are building this bridge.”

Industrial scaling and operational excellence

Over the past year, HENSOLDT has made tangible progress in scaling production and improving efficiency across its value chain. New logistics and manufacturing centres, automation modules, and the “Operations 2.0” initiative have significantly increased output capacity while improving process stability.
By 2027, the company expects to begin production from a new radar manufacturing facility that will more than triple total capacity compared to 2021 levels. Additional measures include the introduction of lean manufacturing principles, closer supplier partnerships and a fully digitised enterprise backbone through the “oneSAPnow” programme. This integrated data-driven platform supports transparency, process control and long-term scalability.

Leading the era of Software-Defined Defence

A core pillar of HENSOLDT’s strategy is the expansion of its software-defined defence portfolio. The company has consolidated its software, data and integration expertise into a dedicated business unit, centred on the proprietary MDOcore platform. This software suite enables sensor networking, real-time data fusion and cross-domain command capabilities.
Initial implementations, including integration into the new Luchs 2 reconnaissance vehicle, demonstrate the system’s operational maturity. The company expects SDD solutions to unlock higher-margin revenue streams from software licences, data-driven services and long-term upgrade contracts, complementing its traditional hardware portfolio.

Financial guidance and long-term growth targets

Reflecting the strong momentum in the European defence market, HENSOLDT reported a record order backlog of €7.1 billion as of Q3 2025, with order intake exceeding €2 billion and revenue surpassing €1.5 billion for the first nine months. Adjusted EBITDA reached €211 million, marking a year-on-year increase across all metrics.
For the full year 2025, HENSOLDT expects revenue of approximately €2.5 billion and a book-to-bill ratio between 1.6x and 1.9x. Medium-term forecasts anticipate annual revenue growth of 10% in 2026 and 15–20% thereafter, with an EBITDA margin of at least 18% in 2025, rising by 50 basis points annually. The dividend payout is projected to remain stable at 30–40% of adjusted net profit. By 2030, the company aims to reach €6 billion in annual revenue with an EBITDA margin exceeding 20%.

Beyond its financial ambitions, HENSOLDT positions itself as a cornerstone of Europe’s emerging defence ecosystem. By investing in software-defined architectures, digital manufacturing and scalable supply chains, the company seeks to enhance both operational sovereignty and industrial resilience.
CFO Christian Ladurner emphasised that the transformation combines growth with financial discipline: “We are building a scalable and resilient operating system to meet future demand efficiently. Our model gives us a strategic advantage — we scale capabilities and networking opportunities, not platforms.”

Investing in people and partnerships

To sustain its expansion, HENSOLDT has hired more than 1,000 new employees in 2025 and launched targeted development programmes to strengthen leadership and innovation capabilities. The company continues to focus on international markets, strategic partnerships and collaborative projects with European allies, ensuring long-term competitiveness and export growth

Outlook

With its North Star strategy, HENSOLDT is positioning itself at the forefront of Europe’s defence industrial renewal. The combination of software-defined defence, industrial scalability and disciplined financial management is intended to secure both technological leadership and sustainable growth well into the next decade.

Consent to the use of data for promotional purposes

I hereby consent to Vogel Communications Group GmbH & Co. KG, Max-Planck-Str. 7-9, 97082 Würzburg including any affiliated companies according to §§ 15 et seq. AktG (hereafter: Vogel Communications Group) using my e-mail address to send editorial newsletters. A list of all affiliated companies can be found here

Newsletter content may include all products and services of any companies mentioned above, including for example specialist journals and books, events and fairs as well as event-related products and services, print and digital media offers and services such as additional (editorial) newsletters, raffles, lead campaigns, market research both online and offline, specialist webportals and e-learning offers. In case my personal telephone number has also been collected, it may be used for offers of aforementioned products, for services of the companies mentioned above, and market research purposes.

Additionally, my consent also includes the processing of my email address and telephone number for data matching for marketing purposes with select advertising partners such as LinkedIn, Google, and Meta. For this, Vogel Communications Group may transmit said data in hashed form to the advertising partners who then use said data to determine whether I am also a member of the mentioned advertising partner portals. Vogel Communications Group uses this feature for the purposes of re-targeting (up-selling, cross-selling, and customer loyalty), generating so-called look-alike audiences for acquisition of new customers, and as basis for exclusion for on-going advertising campaigns. Further information can be found in section “data matching for marketing purposes”.

In case I access protected data on Internet portals of Vogel Communications Group including any affiliated companies according to §§ 15 et seq. AktG, I need to provide further data in order to register for the access to such content. In return for this free access to editorial content, my data may be used in accordance with this consent for the purposes stated here. This does not apply to data matching for marketing purposes.

Right of revocation

I understand that I can revoke my consent at will. My revocation does not change the lawfulness of data processing that was conducted based on my consent leading up to my revocation. One option to declare my revocation is to use the contact form found at https://contact.vogel.de. In case I no longer wish to receive certain newsletters, I have subscribed to, I can also click on the unsubscribe link included at the end of a newsletter. Further information regarding my right of revocation and the implementation of it as well as the consequences of my revocation can be found in the data protection declaration, section editorial newsletter.