Hensoldt’s Hiring Spree Fuels Race to Fill Record Defense Orders

The German defense electronics specialist Hensoldt is on a hiring blitz, poaching skilled workers from shrinking industrial sectors to tackle a massive bottleneck created by its bulging order book. This aggressive recruitment drive, including new partnerships with engineering firm Voith and automotive supplier Continental, underscores the operational challenge of converting record demand into revenue.

Hensoldt’s order backlog has surged to €8.83 billion, a 33% increase year-over-year. With a book-to-bill ratio of 1.9—meaning nearly two euros of new orders arrive for every one euro of revenue—the company is under intense pressure to expand its capacity. Last year, it hired over a thousand new employees. Plans are in place to recruit an additional 1,600 this year, with the total workforce expected to surpass 10,000 by the end of 2026.

The stock has found support recently, gaining over 10% on a monthly basis to trade around €82.40. This move has pushed the share price back above its 50-day moving average, though it remains nearly 30% below its record high of around €115. Chart analysts now identify the next significant resistance area up to €87.40.

Management’s ambitious targets are coming into sharp focus. For the current year, Hensoldt aims for revenue of approximately €2.75 billion and an adjusted EBIT margin between 18.5% and 19.0%. Analysts are watching closely to see if these profitability goals can be met amidst significant operational expansion. J.P. Morgan maintains a price target of €85 euros, noting the company must still prove it can deliver on its ambitious margin targets in day-to-day operations.

Should investors sell immediately? Or is it worth buying Hensoldt?

To support this growth, the company is also shoring up its industrial base. A long-term contract secures the supply of advanced semiconductors through 2030, and a new radar production site is scheduled to open in 2027. This expansion is buoyed by a robust German defense budget, which has climbed to a record level exceeding €108 billion.

The coming weeks provide critical checkpoints. On May 6, Hensoldt will release its first-quarter results, offering the market a first look at how efficiently it is turning its enormous backlog into tangible sales. Shortly after, at the Annual General Meeting on May 22, shareholders will vote on a proposed dividend increase to €0.55 per share, up five cents from the previous year.

The company’s ability to successfully navigate this period of rapid scaling—managing costs while integrating a wave of new hires—will determine if it can capitalize fully on the historic demand driving the defense sector.