The economy Heckler & Koch benefits from higher demand for weapons

As a result of the war in Ukraine, weapons manufacturer Heckler & Koch is cashing in big time. In the first nine months of this year, turnover rose by 17.7 percent to 253.6 million euros.

The order books are full: in the first three quarters, incoming orders soared to 277.2 million euros, according to the arms manufacturer in the northern Black Forest. This is an increase of 46 percent compared to the previous year.

However, the company was less profitable. The operating result (EBIT) only increased by around 2.5 percent to 33.2 million euros. This is partly due to the growing "systems business": HK not only sells the gun, but also additional components such as silencers and laser light modules. This type of resale is less profitable than products manufactured in-house.

Heckler & Koch's customers are the German Bundeswehr and other armies of NATO countries such as France, Great Britain and Norway. The increase in the Russian threat following the annexation of Crimea in 2014 and the start of the war in Ukraine in 2022 has led to a rise in demand for handguns.

Baltic states have also purchased from H&K. The police also purchase weapons from the arms manufacturer. Sales to private individuals are also playing a greater role for the company in the USA.

The company manufactures assault rifles, machine guns, grenade launchers and pistols. The headquarters and main plant are located in Oberndorf, where H&K has more than 900 employees. In the US state of Georgia, the company has a pistol assembly plant with around 100 employees. Including other smaller sites, the armaments group has a total of around 1160 employees.

SDA