Hensoldt Wins Antitrust Green Light for Electronic Warfare Venture as Order Book Passes €10 Billion

German antitrust authorities clear Hensoldt, Rohde & Schwarz, Plath and General Dynamics joint venture for electronic warfare; Hensoldt reaffirms 2026 guidance.

German antitrust authorities have cleared the creation of a joint venture in electronic warfare involving Hensoldt, Rohde & Schwarz, Plath and General Dynamics, according to media reports. The Bundeskartellamt's approval removes the key regulatory hurdle the four defense contractors needed before jointly pursuing an upcoming Bundeswehr tender for electronic warfare systems.

The move matters because it allows the partners to approach the procurement process with a single, coordinated system rather than competing bids — a structure that could strengthen their hand in a contest where the armed forces are seeking integrated electronic warfare capabilities. With the competition watchdog's sign-off secured, attention now shifts to the Bundeswehr's award procedure, where the consortium intends to bid as one.

Shares Shrug Off the News

Equity markets took the decision in stride. Hensoldt's stock traded with a marginal loss of 0.05% at €75.96, leaving the sensor specialist about 35% below its 52-week high. The muted reaction reflects a broader mood: European defense names have been grappling with profit-taking and political debate over future military budgets, and Hensoldt has not been immune. On Monday the shares shed 0.8% to close at €75.52, putting them 36% under their peak for the year. The sector as a whole came under visible pressure last Thursday, with market watchers pointing to profit-taking after the previous rally as well as uncertainty over future defense spending.

Order Momentum Builds on Multiple Fronts

Operationally, the company keeps stacking up new business. On September 9, the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) placed a €15 million order to further develop the Optarion mission support system, which links helicopters into digital command networks. A separate development contract for Optarion EUA arrived roughly two weeks ago, following an order for air taxi avionics secured about a month earlier. Morningstar also upgraded the stock to Buy around a month ago.

Field testing has provided additional momentum. During the Timber Express air force exercise, the Twinvis passive radar demonstrated its capabilities in an allied context; Hensoldt had integrated the system into Rheinmetall's Skymaster platform to prove NATO network interoperability. Ground-based programs have also delivered wins: in early August the BAAINBw issued a series production order for dismounted Joint Fire Support Teams, and in May Hensoldt landed a contract for spare parts for the optronic equipment on Canada's Leopard 2 tanks.

South Africa Unit Expands the Portfolio

Internationally, Hensoldt South Africa unveiled the Automated Spectrum Management System (ASMS) on September 18 at the Africa Aerospace and Defence 2026 trade fair. The new system handles planning, coordination, allocation and monitoring of the electromagnetic spectrum during military operations. The unit also launched the KENIS thermal imaging sensor as a standalone product and announced an initial order. Elsewhere in sensing, technology company Helsing became the first customer for the CAIRAS passive infrared warning system.

Record Backlog Underpins Guidance

The steady flow of contracts is visible in the financials. In the first half, Hensoldt doubled order intake to €2,812 million, pushing its order backlog past the €10 billion mark for the first time. Profitability has followed: adjusted operating earnings improved markedly, and management raised the free cash flow conversion rate. That filled order book gives the sensor specialist a reliable planning base for the coming quarters.

For fiscal 2026, Hensoldt reaffirmed its full-year guidance. The executive board expects revenue of around €2,750 million, with an adjusted EBITDA margin between 18.5% and 19.0%.