Hensoldt targets 10 billion euro revenue by 2035
German defense electronics firm Hensoldt aims to quadruple its revenue to 10 billion euros by 2035, driven by strong demand for air defense systems. The stock has risen significantly since its 2020 IPO, though analysts remain divided on its valuation.
Hensoldt, a German defense electronics firm, has presented a target of 10 billion euros in revenue by 2035, roughly four times its 2025 level, with an intermediate goal of 6 billion euros by 2030. The company expects operating margins to rise from 19% to 21% over this period. Its order backlog is projected to reach 11.2 billion euros by year-end, having grown 46% in the first nine months. To meet this demand, Hensoldt has quintupled production capacity for its TRML-4D air defense radar in three years and plans to increase Spexer radar production from 130 to 1,000 units annually by 2029.
The stock has risen from 12 euros at its 2020 IPO to 83 euros, reflecting strong investor confidence in the defense sector. However, analysts are divided on whether the current price fully prices in the company's ambitious growth targets and its dependence on state procurement budgets. Jefferies maintains a buy rating with a 98 euro target, while MBB Research recommends selling with a 70 euro target, citing the need for Hensoldt to secure a large share of the German defense budget. The company's performance highlights the broader trend of increased defense spending in Europe, with peers like Rheinmetall also benefiting from the shift.