Hensoldt Aggressively Eyes AI Investments Amidst Global Instability

German Defence Contractor Focuses on AI

Recognizing the significant potential of cutting-edge technology in defence, German company Hensoldt has pinpointed artificial intelligence (AI) and analytics as key areas for investment. This insight was shared during the company's recent Capital Markets Day, where Hensoldt outlined its forward-looking strategy in the rapidly evolving defence sector.

Strategic Growth Through Mergers and Acquisitions

Hensoldt, known for producing cutting-edge radars such as those used in the IRIS-T air defence system which is currently deployed in Ukraine, has not shied away from expressing its intent to grow through mergers and acquisitions. In line with this strategy, investments in AI and analytics, alongside service and integration, have been identified as fertile grounds for expansion.

Investing Across the Business Spectrum

The company revealed its ambitions to foster AI development throughout its operations, impacting a broad range of products and solutions. Hensoldt's assertive approach is a direct response to the growing global demand for advanced defence and security technologies, a need that has been magnified by heightened geopolitical tensions.

Hensoldt Seeks European Leadership in Defence

As orders continue to surge—more than doubling since 2019—Hensoldt is looking at strategic acquisitions to establish itself as a forerunner in the European defence arena. CEO Thomas Mueller underscored the critical period the world is navigating, emphasizing the urgency for comprehensive defence and security solutions.

Capitalizing on Current Opportunities

The company, which is partially state-owned, has recently initiated a plan to increase capital, aiming to finance the acquisition of ESG, a prominent German military service firm. At the same time, Hensoldt stands firm in its annual and mid-term financial targets, buoyed by an order backlog worth approximately 5.5 billion euros—a figure that solidifies its revenue projections for the year 2024.

AI, investment, defence