Hensoldt
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Hensoldt (HAG) investor relations material

Hensoldt Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary26 Feb, 2026

Executive summary

  • Delivered above FY 2025 guidance with record order intake, revenue, and profitability, driven by structural growth, transformative initiatives, and expanded industrial capacities.

  • Order backlog reached a record €8.8 billion, up 33% year-over-year, providing high revenue visibility and planning certainty.

  • Strategic transformation advanced with new partnerships, expanded footprint, and acquisition of ESG Group, increasing workforce to around 9,200.

  • Leadership continuity ensured with CEO contract extended to 2031 and new CHRO joining.

Financial highlights

  • Revenue increased to €2,455 million, up nearly 10% year-over-year; adjusted EBITDA rose 12% to €452 million, margin at 18.4%.

  • Adjusted free cash flow surged 39% to €347 million, with cash conversion exceeding 100% of adjusted EBITDA.

  • Adjusted net income at €170 million; proposed dividend of €0.55 per share, up 10%, payout ratio at 37% of adjusted net income.

  • Net leverage stable at 1.6x, net debt at €713 million, reflecting capacity expansion.

  • Book-to-bill ratio reached 1.9x, up from 1.3x, reflecting strong order intake and demand.

Outlook and guidance

  • 2026 guidance: revenue ~€2,750 million, adjusted EBITDA margin 18.5–19%, book-to-bill 1.5–2.0x, and 30–40% dividend payout.

  • Adjusted free cash flow conversion expected around 40% due to higher CapEx; net leverage target set at around 1.5x.

  • Midterm targets: organic revenue growth of 15–20% annually, margin expansion by 50bps per year, and continued deleveraging.

  • High order intake expected in 2026, with major contracts in Sensors and Optronics.

Sensors segment: Impact of radar production delays?
Detail ramp-up measures for backlog conversion.
Explain unchanged net leverage despite FCF growth.
Future CapEx strategy for site expansion?
How does neo system house differentiate Hensoldt?
luWES: What drives the billion-level potential?
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Frequently asked questions

Hensoldt AG is a Germany-based company specializing in defense and security electronics. The company develops and manufactures advanced sensor systems, avionics, and cybersecurity solutions for military, government, and civilian applications. Its product portfolio includes radar systems, optical sensors, electronic warfare equipment, and surveillance technologies. The company is headquartered in Taufkirchen, Germany, and its shares are listed on the Frankfurt Stock Exchange.

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