Finance
Hensoldt H1 sales boosted by higher military spending in Europe
Published by Global Banking and Finance Review
Posted on July 31, 2025
2 min readLast updated: January 16, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on July 31, 2025
2 min readLast updated: January 16, 2026
(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)
Hensoldt reported higher half-year sales due to increased European military spending, particularly influenced by the ongoing conflicts in Ukraine and the Middle East.
Hensoldt confirmed its revenue guidance for this year in a range of 2.5 billion to 2.6 billion euros.
The pan-European aerospace and defense equity index has risen 50% so far this year, driven by the expectation of higher defense spending in Europe.
Germany approved a fiscal plan this year that largely removes defense investment from limits on state borrowing, indicating a significant shift in its defense spending policy.
European peers such as Sweden's Saab and British BAE Systems have also reported double-digit growth for the quarter, fueled by increased defense investment.
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