German defence electronics specialist Hensoldt reported first-half orders more than doubled to €2.81 billion despite losing a radar contract worth more than €200 million after Germany cancelled the F126 frigate programme in June, highlighting the strength of demand across Europe’s defence supply chain.
Revenue rose 23.6% to €1.17 billion while the company’s order backlog exceeded €10 billion for the first time, reaching €10.36 billion. Profit also rose sharply, up 28.5% to €137 million, as military spending continued to support demand for sensors, radars and electronic systems.
Growth was led by Hensoldt’s Optronics business, which supplies surveillance, targeting and sighting sensor systems for military vehicles, aircraft and submarines. Orders increased almost sixfold to more than €900 million, supported by contracts for Puma and Schakal armoured vehicles. The company’s radar business also benefited from Eurofighter programmes and TRML-4D air-defence radars, which have been widely supplied to Ukraine.
Earlier this month, Germany cancelled the F126 frigate programme, ending a radar contract worth more than €200 million for Hensoldt. The company said at the time the decision would not affect its medium-term outlook, and the latest results suggest demand elsewhere has more than offset the loss.
“The political decisions to increase defence spending are now being reflected in our order book,” Chief Executive Oliver Dörre said, adding that the company’s priority had shifted from winning business to expanding production capacity to meet demand.
Hensoldt maintained its full-year guidance, targeting revenue of around €2.75 billion.
The results provide one of the clearest indications yet that Europe’s rearmament is extending beyond major platform manufacturers and into specialist defence electronics suppliers producing the sensors, radars and electronic systems that enable modern military equipment.
