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Denel, South Africa’s state-owned defence and technology company, has been regaining momentum in 2025 with renewed international engagement and major turnaround projects. The company showcased a strong presence at the IDEX25 defence exhibition in Abu Dhabi, expanding its global profile and cultivating new business opportunities in international markets[7]. Additionally, Denel recently signed a Memorandum of Understanding (MoU) with the Brazilian aerospace giant Embraer to cooperate on the KC-390 Millennium transport aircraft programme[7].

Denel is actively pursuing an order pipeline valued at R30-R53 billion across the next two years, which is expected to contribute significantly to financial recovery and long-term sustainability[1][3][5]. The company is initiating new projects in unmanned aerial vehicles (UAVs) and missile technology while ramping up deliveries such as the first production A-Darter missiles to the South African Air Force[5].

Revenue projections for Denel suggest substantial growth, with annual revenue expected to rise from R2.6 billion in 2024/25 to R3.8 billion in 2027/28, driven primarily by increased business activity and the implementation of its turnaround strategy. More than 96% of projected revenue is anticipated from the sale of defence and security equipment and services[2]. Programme-level targets for 2024/25 include R206 million from aerospace, R664 million from aviation, R1.3 billion from land solutions, and R185 million from integrated systems[2].

Despite visible operational recovery, Denel faces ongoing governance and transparency concerns. The company has not published audited financial statements or annual reports for the past five years, even while claiming recent profitability and receiving over R10 billion in bailouts and additional Treasury guarantees in 2025[6]. Parliamentary criticism centers on the lack of proper statutory reporting and oversight for its strategic plans, including the widely discussed “Journey to Greatness” initiative. The Democratic Alliance (DA) continues to demand clarity and greater accountability from both Denel and the South African government regarding defence sector reforms and funding[6].

To facilitate restructuring and meet legacy obligations, Denel was granted access to R3.4 billion through a Special Appropriation Act in 2022, of which R914 million remains for capital projects and optimization, conditional on completing asset sales and other turnaround milestones[4]. The government maintains confidence that Denel’s current strategy will ensure long-term sustainability, leveraging these funds to cover debt, invest in priority projects, and restructure operations[4].

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