Published by Global Banking and Finance Review
Posted on September 26, 2025
2 min readLast updated: January 21, 2026
Hensoldt will invest €1 billion to meet increased German defence orders, with sales expected to triple by 2030 due to rising defence spending.
BERLIN (Reuters) -German defence electronics group Hensoldt will invest around 1 billion euros ($1.17 billion) within the next two years to help meet the massive uptick in orders coming from the German government, CEO Oliver Doerre said on Thursday evening.
The government has been placing orders in quantities "10 to 20 times what we had in the past," when it often only ordered small quantities through framework agreements, said Doerre.
With a view to the incoming major orders, the maker of radar systems for combat aircraft and air defence systems will invest around 1 billion euros between 2025 and 2027.
A new law meant to speed up procurement procedures should make financing easier for the company, said Doerre.
"We hope that we will also receive advance payments in future," he said. Before, payment was only made upon delivery.
Germany's defence spending is due to rise to 108 billion euros next year as Europe bulks up its defence capabilities to deal with the possible threat posed by Russia in coming years.
Hensoldt said its sales are set to almost triple to around 6 billion euros by 2030, increasing by an average of more than 10% each year, as a result of the increased German defence spending.
($1 = 0.8565 euros)
(Reporting by Markus Wacket, Writing by Miranda Murray; editing by Matthias Williams)
Hensoldt will invest around 1 billion euros ($1.17 billion) within the next two years.
The German government has been placing orders in quantities 10 to 20 times greater than in the past, responding to rising defence needs.
The new law aims to speed up procurement procedures, which should make financing easier for Hensoldt.
Hensoldt expects its sales to nearly triple to around 6 billion euros by 2030, with an average annual increase of more than 10%.
Germany's defence spending is expected to rise to 108 billion euros next year as Europe enhances its defence capabilities.
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