Defense contracts often span several years and are increasingly awarded in larger batches and under framework agreements. This requires robust cost estimation, project management, and cash flow planning—in addition to customs duties, sales tax, and the control systems that clients and investors expect. According to the DIHK, 17% of the industrial companies surveyed are already active in the defense value chain.

Scalable processes, integrated planning, and an ERP system capable of handling higher volumes—such as one resulting from an SAP S/4HANA transformation—are crucial. Finance Business Partnering helps bridge short-term bottlenecks: Experienced professionals reinforce your team for specific tasks, work packages, or entire projects. On the tax side, automated processes ensure that the tax department can keep pace with growth.

Capital market readiness does not happen overnight: It requires IFRS reporting, an effective internal control system, reliable planning, and a compelling equity story. The fact that investors are interested in the industry is demonstrated by CSG’s initial public offering in January 2026, which had a placement volume of €3.8 billion. WTS supports the preparation process—right through to tax structuring.

Joint European programs spread development, manufacturing, and deliveries across multiple countries. This raises questions regarding permanent establishments, transfer pricing, withholding taxes, value-added tax, and customs duties—often as early as the bidding and cost-estimation phase. WTS clarifies these issues early on and integrates them into processes and systems to ensure that margins and project schedules are maintained.

No Blanket Approach: The European Commission considers blanket ESG exclusions of defense companies to be incompatible with its strategic goals. However, banks and investors apply their own criteria—which makes transparent sustainability information all the more important. With the simplified ESRS 2.0 and the amended CSRD, the issue of reporting requirements and scope is also being reexamined.