Hensoldt Ag Stock Earnings Reports

Hensoldt reported strong H1 2025 operational momentum and a record order backlog of over EUR 7.0 billion (book-to-bill ~1.5x), driven by Eurofighter, TRML‑4D and Optronics. Group revenue rose 11% to EUR 944m (core revenue +14% excl. pass‑through), adjusted EBITDA improved to EUR 107m (margin 11.3%) and adjusted EBIT was EUR 49m. Adjusted free cash flow was negative EUR 181m due to seasonal working capital build ahead of expected higher H2 volumes. Management reiterated full‑year 2025 guidance (revenue EUR 2.5–2.6bn; adjusted EBITDA margin ~18%; cash conversion target 50–60%; net leverage ~1.5x; dividend payout 30–40% of adjusted net income). Key operational items: temporary productivity drag from the new logistics center is easing, the Oberkochen site move remains on schedule, production capacity has been expanded (2 shifts electronics, 3 shifts logistics) and Operations 2.0 is being designed to prepare for a material step‑up in demand. Strategic highlights: ESG acquisition synergies are on track (EUR 19m cost synergy run‑rate target to 2028), refinancing was successfully completed (EUR 300m promissory note placement), and management expects significant upside from Germany’s defense budget ramp to 3.5% of GDP — with OEM‑level orders anticipated to begin arriving late 2025 and flow into Hensoldt’s order book by mid‑2026, though timing and exact volumes remain a key uncertainty. Management will provide more detail at the Capital Markets Day and continues to evaluate funding and execution plans for capacity investments.