Hensoldt H1 sales boosted by higher military spending in Europe

(Reuters) -German defence electronics maker Hensoldt reported higher half-year sales on Thursday, as orders were boosted by increased European military spending amid conflicts in Ukraine and the Middle East. The company said its sales grew 11% from a year earlier to 944 million euros ($1.08 billion) in the first six months of 2025, underpinned by the performance of its optronics business which offset a slower start in the sensor segment.

The firm's home country Germany, traditionally wary when it comes to spending on armaments, this year approved a fiscal plan that largely removes defence investment from limits on state borrowing.

"We now expect this political will to increasingly translate into concrete orders," chief executive Oliver Doerre said in a statement, as Hensoldt's order intake came at 1.40 billion euros in the first half.

The pan-European aerospace and defence equity index has risen 50% so far this year on the prospect of higher defence spending in Europe and a U.S. disengagement in Europe.

European peers of the radar and high precision optics company such as Sweden's Saab and British BAE Systems have also reported double-digit growth for the quarter, fueled by growing defence investments.

Hensoldt, which provides sensor systems for the Eurofighter, confirmed its revenue guidance for this year in a range of 2.5 billion to 2.6 billion euros.

($1 = 0.8724 euros)

(Reporting by Paolo Laudani in Gdansk; Editing by Matt Scuffham)