Hensoldt (HAG) CMD 2025 summary

Strategic direction and market environment

• Raised 2030 revenue target to EUR 6 billion, aiming to double revenues sustainably through efficiency, resilience, and profitability, with growth expected beyond 2030.

• Accelerated shift to software-defined, multi-domain defense solutions, focusing on readiness, rapid delivery, and smart, connected sensors.

• Germany and several European countries have committed to 3.5% of GDP for defense, driving a supercycle in defense spending and procurement.

• Strong political support and anchor shareholding by the German government position the company as a national champion in defense electronics, with German-led programs fueling European collaboration.

• International expansion targets strategic regions including the US, Canada, Middle East, India, APAC, and Australia.

Operational transformation and capacity expansion

• Operations 2.0 strategy implemented, emphasizing scalability, resilience, and efficiency, with new logistics centers and expanded optronics sites.

• Significant investments in new and modernized production sites, including Wetzlar and Oberkochen, and digital infrastructure.

• Production capacity for key products like TRML-4D and SPEXR radars has increased up to 8.5 times since 2021, with further expansions planned.

• Supply chain resilience enhanced through local sourcing, multi-year contracts, vertical integration, and strategic partnerships.

• CapEx is expected to rise to around 3% of revenue, with a one-time EUR 80 million investment in 2026 and normalization post-2028.

Technology and innovation roadmap

• Transitioning from hardware-focused to software- and data-centric, high-margin recurring revenue streams, with the MDO Core platform as the digital backbone.

• Software-defined defense is now a reality, with products like Elysion and Ceritron delivering modular, upgradable, and recurring revenue streams.

• R&D investments will remain at 5%-6% of revenues, with a growing share dedicated to software, AI, and digital architectures.

• By 2028, a high double-digit million EUR will be invested in software-defined defense and digital platforms.

• Software and services are expected to account for around 8% of total revenue by 2030, up from ~1% in 2024.