Investors close in on Denmark’s fast-growing defence sector

Some of Denmark’s leading defence companies could be heading for steep growth over the coming decade. At the same time, investors are increasingly competing for access to the sector.

The assessment comes from consultancy EY-Parthenon and is reported by Danish business daily Finans.

EY-Parthenon estimates that Danish defence companies, led by Terma, Systematic and MyDefence, could generate annual revenue of DKK 30bn by 2035. The consultancy expects interest from private equity funds and other investors to intensify further.

The forecast follows strong growth among several of the companies. As previously reported by Defence Nordic, MyDefence more than doubled gross profit to DKK 256m in 2025 and recorded an operating profit of DKK 97.8m. Terma increased revenue by 17% to DKK 3.4bn in its 2025/26 financial year.

MyDefence CEO Dan Hermansen has previously said that raising capital has become markedly easier since 2019 as venture funds, specialist investors and pension funds have turned towards defence. Banks, however, remain more reluctant.

New sources of capital are also emerging. PensionDanmark, AP Pension and AkademikerPension have established a joint defence fund, while private equity firm CataCap is examining acquisition targets in Denmark and elsewhere in northern Europe, according to Finans.

CataCap is seeking companies with EBITDA of between EUR 10m and EUR 25m. The investment interest is expected to remain even if the war in Ukraine ends, supported by continued European rearmament and defence spending at structurally higher levels.